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Cerberus To Buy Supervalu Brands

Updated January 10, at 10:56 a.m.

Zacks Equity Research reports that Cerberus Capital Management finally agreed to buy parts of Supervalu supermarket holdings for $500 million in equity. Cerberus was reportedly willing to pay $900 million for the whole company, but its lenders did not agree on the valuation for the struggling supermarket operator.

Supervalu will sell its Save-A-Lot division separately, Zacks reports.

Here's more information on the financial aspects of a Supervalu acquisition from SeekingAlpha.com.

Update:

It's official. In a deal valued at $3.3 billion, Cerberus will acquire Supervalu's Albertsons, Acme, Shaw and Jewell-Osco brands, reports The Chicago Tribune.

The sale will be completed through Cerberus affiliate AB Acquisition, with other investors including Kimco Realty Corp., Klaff Realty, Lubert-Adler Partners and Schottenstein Real Estate Group. The price will be paid through $3.2 billion in debt and $100 million in cash.

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