Supervalu is one of the nation's leading supermarket operators. The company serves customers across the United States through a network of approximately 4,350 stores.Saddled with debt and losing money, SUPERVALU announced in January it will sell its Albertsons, Acme, Jewel-Osco, Shaw's and Star Market stores and related Osco and Sav-on in-store pharmacies to AB Acquisition LLC, an affiliate of a Cerberus Capital Management L.P.-led investor consortium which also includes Kimco Realty Corporation, Klaff Realty LP, Lubert-Adler Partners and Schottenstein Real Estate Group, in a transaction valued at $3.3 billion.
SUPERVALU will receive $100 million in cash and AB Acquisition will assume $3.2 billion in debut and take over 877 stores from the company.
Following the Sale, SUPERVALU will consist of the Independent Business, a leading food wholesaler which serves 1,950 stores across the country; Save-A-Lot, the largest hard discount grocery chain in the United States, with approximately 1,300 stores; and SUPERVALU's leading regional retail food banners Cub, Farm Fresh, Shoppers, Shop'n Save and Hornbacher's. SUPERVALU is expected to generate annual revenues in excess of $17 billion following the deal. Key elements of SUPERVALU's go-forward business plan include continued focus on right-sizing operations and maximizing efficiencies across the Company.
In 1870, Hugh G. Harrison provided the seed money for B.S. Bull and Company, a dry goods wholesaler serving Minneapolis, St. Paul and surrounding rural communities. Though B.S. Bull was short lived, its founders went on to create similar enterprises. In 1926, these kindred companies joined to form Winston and Newell Company, the direct parent of Supervalu.
In 2006, the company acquired the Albertsons chain for $17.4 billion in stock and debt assumption.
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Updated January 16, 2013