1/10/2013

PHOTO: Sam Duncan

Supervalu Inc. (NYSE: SVU) said Thursday it had reached a definitive agreement to sell its Albertsons, Acme, Jewel-Osco, Shaw’s and Star Market stores to a Cerberus Capital Management-led investor consortium for $3.3 billion.

Minnesota-based Supervalu will retain Cub, Farm Fresh, Shoppers, Shop ‘n Save and Hornbacher’s. The company estimated it will generate annual revenues in excess of $17 billion. During the past four years, Supervalu has lost more than $5 billion. It's common shares dropped from $20 to approximately $2.80 during that same period.

The newly-formed acquisition entity will conduct a tender offer for up to 30 percent of Supervalu's outstanding common stock at a purchase price of $4 per share in cash. In a news release, Supervalu said the tender offer represents a 50 percent premium to its 30-day average closing share price as of Wednesday.

When the transaction closes, Sam Duncan will become president and CEO, replacing Wayne Sales.

For complete details of the proposed transaction, click here.

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