MINNEAPOLIS—Supervalu Inc., based here, has completed the $3.3 billion sale of five of its store brands to Cerberus Capital Management L.P.
The sale of Albertsons, Acme, Jewel-Osco, Shaw’s andStar Marketstores and related Osco and Sav-on in-store pharmacies includes $100 million in cash and $3.2 billion in debt assumption. The operations for the banners changed on March 22.
Symphony Investors, a Cerberus-led investor consortium, has also become Supervalu’s largest shareholder with 21.2 percent of total outstanding common shares.With the transaction complete,Supervalunow consists of three business units made up of Independent Business, a food wholesaler which serves nearly 2,000 stores across the country; Save-A-Lot, a hard discount grocery chain inthe United Stateswith more than 1,300 stores; and five, strong regional retail banners: Cub, Farm Fresh, Shoppers, Shop ‘n Save and Hornbacher’s.
Robert Miller, president and chief executive officer ofAlbertsons LLC, has been named Supervalu’s new non-executive chairman of the board replacingWayne Sales, who has served as executive chairman sinceAugust 2012.
Sam Duncan, Supervalu’s president and CEO, says in a statement that Supervalu will continue as a wholesale grocery provider 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,” he says.