Minneapolis -- Supervalu Inc. announced Thursday that it has reached a deal to sell its Albertsons, Acme, Jewel-Osco, Shaw's and Star Market stores and related Osco and Sav-on in-store pharmacies to a private equity group in a transaction valued at $3.3 billion.
AB Acquisition, a consortium of investors led by Cerberus Capital Management, will get 877 stores across the various banners in the deal. The investor group also includes Kimco Realty Corp., Klaff Realty LP, Lubert-Adler Partners and Schottenstein Real Estate Group.
Post-transaction, Supervalu will consist of the Independent Business, a leading food wholesaler which serves1,950 stores across the country; Save-A-Lot, with approximately 1,300 stores; and regional supermarket banners Cub, Farm Fresh, Shoppers, Shop ‘n Save and Hornbacher’s. The company is expected to generate annual revenues in excess of $17 billion.
Once the deal closes, Supervalu will be headed by grocery retail veteran Sam Duncan, who will serve as president and CEO. He will replace current president, CEO and chairman, Wayne Sales.
In addition, effective upon the closing of the transactions, five current Supervalu directors will resign.