Cerberus May Seek Control of Albertsons and Save-a-Lot
By DMTV Staff
Cerberus Capital Management is working towards a deal to acquire Supervalu's retail chains, Albertsons and Save-A-Lot stores. Supervalu is said to be considering the deal to sell the banners after talks on a full takeover of the grocer stalled with Cerberus, according to a recent report in Bloomberg. Discussions on the entire bid came to a near standstill after Cerberus and lenders disagreed over financing terms.
The report states that Cerberus may seek control of Albertsons and Save-a-Lot, Supervalu's two largest chains, instead of the previous objective of an entire acquisition. This would allow them to take an equity stake in what remains of Supervalu. The acquisition could allow Supervalu to pay down some of its more than $6 billion in debt.
Supervalu sales have dropped for three years in a row and are predicted to drop in the company’s fiscal 2013 to 4.4 percent to $34.5 billion, according to data compiled by Bloomberg. Supervalu has recently lowered prices at some of its banners to draw in customers and compete with big-box retailers that include Wal-Mart and Target.
Supervalu’s largest chain is the Save-A-Lot banner with its more than 1,280 stores in the U.S. Albertsons' 450 stores make it Supervalu's second-largest chain.