Eiffel Tower - A creamy cow’s milk delight, featuring a chalky white rind and a cream-colored, buttery, soft interior that oozes when at the peak of ripeness and temperature
BelGioioso - Burrata & Stracciatella
SuperValu to Acquire Associated Grocers of Florida for $180 Million; Announces

SuperValu to Acquire Associated Grocers of Florida for $180 Million; Announces


MINNEAPOLIS, MN
Wednesday, October 18th, 2017

In tandem with its Q2 2018 financial report, SuperValu has announced it will acquire wholesaler Associated Grocers of Florida, Inc. in a $180 million transaction, for what looks to be a continued stratgeic push towards wholesale.

Mark Gross, President & CEO, SuperValu"Associated Grocers represents a great opportunity for us to further expand our wholesale business into another important region," said Mark Gross, SuperValu’s President and Chief Executive Officer. "We believe SuperValu is uniquely positioned to be the supplier of choice across the grocery industry and this acquisition is another example of how we're delivering on our growth strategy."

According to a press release, this transaction is one that will expand SuperValu’s operations into new territory in Florida, and will help bolster the diversity of its customer base in South Florida, the Caribbean, and other international markets. As part of the deal, SuperValu says it has reached a long-term supply agreement with Associated Grocers' largest customer that will go into effect upon the closing of the transaction. During Associated Grocers' last fiscal year, which ended on July 29, 2017, revenues were approximately $650 million, as estimated by SuperValu.

Christopher Miller, President, Associated Grocers of Florida, Inc.Christopher Miller, President, Associated Grocers of Florida, Inc."I'm very excited about this announcement," said Associated Grocers' President Christopher Miller. "Being a part of SuperValu will provide us with access to resources, products, services, and overall capabilities that are essential to helping us continue to provide top-notch support to our customers. SuperValu and Associated Grocers share a common dedication and commitment to the independent retailer, and together, we'll be in a great position to provide opportunitiesinnovation, and increased value to our customers, both domestically and in foreign markets."

The transaction, which was approved by each company's board of directors, is currently expected to close by the end of calendar year 2017, subject to approval by Associated Grocers' shareholders and other customary closing conditions.

Associated Grocers of Florida, Inc. Truck

The acquisition was announced alongside SuperValu’s Q2 2018 financial report, which saw the company wholesale net sales increase by over $1 billion, or 58%, over last year’s second quarter. SuperValu has made several efforts to polish its wholesale business, now its most profitable, including spinning off and selling its Save-A-Lot business, as well as acquiring Unified Grocers in early April of this year. As we reported previously, this increased focus on wholesale has translated to much success on the company’s part, boosting SuperValu stock by nearly 10 percent over the summer.

“We continue to make tremendous strides in driving our strategy, evidenced by another quarter of strong growth from our core Wholesale business which now represents over seventy percent of net sales,” said Gross. “Additionally, our results now include the benefit of Unified Grocers, where I'm pleased that the transition is going well. We have a lot to be excited about as we turn our focus toward the back half of our fiscal year.”

A SuperValu Warehouse

Other highlight’s from SuperValu’s Q2 2018 financial report are as follows:


  • Consolidated net sales increased by $995 million, or 35%, over last year’s second quarter
  • Second quarter net loss from continuing operations of $25 million; Adjusted EBITDA of $111 million
  • Second quarter net sales were $3.80 billion compared to $2.81 billion last year, an increase of $995 million or 35 percent
  • Gross profit for the second quarter was $428 million, or 11.3 percent of net sales

For fiscal 2018, Supervalu currently expects net earnings from continuing operations to be in the range of $31 million to $50 million

As SuperValu looks to carve out its niche in the U.S. wholesale market, Deli Market News will continue to keep our fingers on the pulse.

SuperValu
Topics:


Eiffel Tower - A creamy cow’s milk delight, featuring a chalky white rind and a cream-colored, buttery, soft interior that oozes when at the peak of ripeness and temperatureBelGioioso - Burrata & Stracciatella

Have a new product, press release or story idea?

Let us know

In This Story


SUPERVALU is a grocery industry leader, serving customers through over 3,400 owned, licensed, franchised and affiliated stores across the country. Our roots are in supply and wholesale distribution...

The Spice Lab is Now USDA NOP Organic Certified

The USDA Organic seal assures consumers that products are 95% or more certified organic.
View Press Release

Valio Unveils On-Trend Food Innovations and Ingredients Solutions at SIAL Paris

The company plans to showcase its latest food innovations and tailor-made ingredients solutions at the upcoming show.
View Press Release

Charlotte-Based Hissho Sushi Makes N.C. Mid-Market Fast 40 List

This year marks 20 years since Hissho Sushi was founded in Charlotte, NC.
View Press Release

Anheuser-Busch Inbev & DS Smith Plastics Named 2018 Excellence in Reusable Packaging Award Winners

RPA announces two winners in the 2018 Excellence in Reusable Packaging award program.
View Press Release

It's Pumpkin Spice Season!

Litehouse debuts a fresh look for its line of deliciously indulgent caramel dips and a limited-edition flavor: Pumpkin Spice Caramel.
View Press Release

Time to Step Up Your Fall Menu Plan; Pereg Natural Foods Gets You Started

Suffering from pumpkin spice fatigue? Here are 14 savory reasons why you still need pumpkin spice in your life.
View Press Release

New Snack Bars Take the Tahini Craze to Healthy Delicious Heights

Absolutely Gluten Free introduces TahiniBAR, the energy bar made from sesame seeds, in three exciting flavors.
View Press Release

Apex to Represent Ice-O-Matic® in MAFSI Territory 16 & 19

Sales and sales support coverage by the global ice machine manufacturer now includes multiple states in the Midwestern U.S. with personnel in four major cities.
View Press Release

HNINA Receives Chocolatier's Award

International Chocolate Salon honors Vanessa (Hnina) Morgenstern-Kenan with The Chocolatier's Award.
View Press Release