Supervalu Albertsons $3.3 Billion Deal to Closes Thursday
By Eric Anderson
Supervalu’s $3.3 billion sale of Albertsons stores to Ceberus Capital Management closed on Thursday, reuniting the brands that went their separate ways in 2006.
Supervalu has sold all Albertsons, Acme, Jewel-Osco, Shaw’s and Star Market stores to Cerberus, the investment firm that purchased some of the Albertsons stores in 2006. The deal includes $100 million in cash and $3.2 billion in debt.
The sale is reported to include 877 stores and is likely to include layoffs as part of the restructuring process.
Albertsons LLC, already owned by Ceberus, manages 190 Albertsons Market stores spread across eight states and employing over 20,000 people.
“The successful completion of this transaction marks a significant milestone for Supervalu and our shareholders, customers and employees,” said Sam Duncan, President and Chief Executive Officer. “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.”
Robert Miller, President and Chief Executive Officer of Albertsons LLC becomes Supervalu’s new non-executive chairman of the board, filling the void left by Wayne Sales, who has served as executive chairman since August 2012.