Minneapolis, MN-
By Jordan Okumura
01.10.13
Supervalu has announced a definitive agreement to sell five of its retail grocery banners to Cerberus-led investor group, AB Acquisition LLC. The group will take over Supervalu's Albertsons, Acme, Jewel-Osco, Shaw’s and Star Market stores and related Osco and Sav-on in-store pharmacies. The transaction is valued at $3.3 billion. Cerberus’s partners in the deal include Kimco Realty Corp., Klaff Realty LP, Lubert-Adler Partners and Schottenstein Real Estate Group. The investment includes $100 million in cash and $3.2 billion in debt.
The deal includes 877 stores across the banners. That sale is slated to close by the end of the first calendar quarter.
When the deal closes, Sam Duncan will take over as President and Chief Executive Officer, replacing current President, Chief Executive Officer and Chairman, Wayne Sales. In addition, effective upon the closing of the transactions, five SUPERVALU directors will resign, according to a press release.
The size of the Board will also be reduced to seven members from the current ten members. This seven member Board will consist of five current SUPERVALU directors and two Board members designated by Symphony Investors.
Following the completion of a search process, the Board will be increased to a size of eleven directors, with the four new directors to consist of Sam Duncan, an additional director appointed by Symphony Investors, and two additional independent Board members to be selected by the initial seven directors.
