Supervalu Inc. announced Jan. 10 that it will sell its Albertsons, Acme, Jewel-Osco, Shaw's and Star Market stores and related Osco and Sav-on in-store pharmacies to AB Acquisition LLC, an affiliate of a Cerberus Capital Management L.P.-led investor consortium, in a transaction valued at $3.3 billion.
The sale to AB Acquisition includes 877 stores for $100 million in cash. Additionally, the group will assume $3.2 billion in existing debt, according to a press release issued by Supervalu.
Supervalu will be headed by grocery retail veteran Sam Duncan, who will assume the role of president and chief executive officer. He replaces the current president, CEO and chairman, Wayne Sales.
Following the sale, Supervalu will consist of the independent business, a leading food wholesaler that serves 1,950 stores across the country; Save-A-Lot, a hard discount grocery chain with approximately 1,300 stores; and Supervalu's leading regional retail food banners Cub, Farm Fresh, Shoppers, Shop 'n Save and Hornbacher's. Supervalu said that is looking to continue its plan to right-size operations and maximize efficiencies, and expects to generate annual revenues in excess of $17 billion.