Supervalu Inc. completed the sale of its Albertsons, Acme, Jewel-Osco, Shaw's and Star Market stores and related Osco and Sav-on in-store pharmacies March 21 to AB Acquisition LLC, an affiliate of a Cerberus Capital Management L.P.-led investor consortium. The stock deal was valued at $3.3 billion, including $100 million in cash and $3.2 billion in debt assumption.
Operations for these banners transferred overnight, and the new Supervalu open for business March 22 in what the company has described as a more efficient wholesale and retail company with annual sales of approximately $17 billion.
With the transaction complete, Supervalu now consists of three business units made up of Independent Business, a leading food wholesaler that serves nearly 2,000 stores across the country; Save-A-Lot, the largest hard discount grocery chain in the United States with more than 1,300 stores; and Supervalu's five regional retail banners: Cub, Farm Fresh, Shoppers, Shop 'n Save and Hornbacher's.
"The successful completion of this transaction marks a significant milestone for Supervalu and our shareholders, customers and employees," Sam Duncan, president and chief executive officer of Supervalu, said in a press release. "As we move forward, Supervalu will continue as one of the largest wholesale grocery providers in America serving nearly 2,000 independent retailers in 43 states. We plan to continue growing our hard discount Save-A-Lot format that includes over 1,300 stores nationwide and we will operate five, strong regional retail banners. I am pleased to be leading Supervalu during this time of change and strongly believe there is an exciting future ahead for us."