New York -- Supervalu directors Mark Neporent and Lenard Tessler have stepped down from the company’s board of directors as a result of Cerberus-owned Albertsons’ deal to acquire Safeway.
Neporent and Tessler were both appointed to the Supervalu board in 2013 as designees of Symphony Investors, a Cerberus Capital Management L.P.-led investor consortium. Symphony Investors owns approximately 20.9% of Supervalu’s outstanding common stock, and has the right to designate replacement directors for Neporent and Tessler.
Neporent is the chief operating officer and general counsel for Cerberus Capital Management. Tessler is the co-head of global private equity and senior managing director of Cerberus Capital Management.
“In light of the transaction announced today, we felt it was in the best interests of Supervalu for us to resign our seats on the Supervalu board,” said Neporent. “The directors who will be designated to replace Lenard and me under the tender offer agreement are expected to be independent of both Cerberus and Supervalu and will add to Supervalu’s outstanding board.”
News of the transaction broke late Thursday. AB Acquisition will acquire all outstanding shares of Safeway in a deal valued at more than $9.1 billion.
“I would like to thank Mark and Lenard for serving on Supervalu's board of directors and for their important contributions during the transition period following the banner sale,” said Supervalu’s non-executive chairman Gerald Storch. “We look forward to working with Cerberus to identify two new, highly qualified director designees to replace Mark and Lenard, and who will help to lead our organization into the future.”
The transaction is expected to close in the fourth quarter of this year.
“I also would like to thank Mark and Lenard for their service. As the process moves forward to designate new directors, we are continuing our focus on driving sales and serving all of our customers, including providing services under the transition services agreements with Albertsons and New Albertsons,” added Supervalu CEO Sam Duncan.
Supervalu’s board currently has nine members, including seven members who are independent directors under the New York Stock Exchange listing standards.