Supervalu in $1.36 billion cash deal to sell Save-A-Lot
Supervalu has found a buyer for its discount grocery business, Save-A-Lot.
Supervalu agreed to sell Save-A-Lot to Onex Corporation, a Toronto-based private equity firm, for $1.365 billion in cash. As part of the agreement, Supervalu will provide professional services to Save-A-Lot for five years.
The sale is expected to be completed by January 31, 2017, subject to regulatory approvals and other customary closing conditions.
In January, Supervalu announced it was considering spinning off Save-A-Lot, which has approximately 1,370 stores, into a publicly traded company in order to focus on growing its grocery wholesale business. Supervalu decided to explore an outright sale of the chain after receiving interest from several private equity firms, according to Reuters, with Onex making the best offer in an auction for Save-A-Lot, Reuters reported in September.
“Today’s announcement is the result of a thorough process to maximize the value of the Save-A-Lot business and best position Supervalu for future success,” said Supervalu non-executive chairman of the board, Jerry Storch. “We are confident that this transaction will create exciting opportunities for both Supervalu and Save-A-Lot.”
Supervalu said it expects to use the net proceeds from the sale to prepay at least $750 million against its outstanding term loan balance. The company intends to use the remaining net sale proceeds to further reduce debt and improve its capital structure, as well as to fund corporate and growth initiatives.
Macy’s and Apple make history
Macy’s on Friday became the first department store retailer to open an in-store Apple shop.
The shop is located on the main floor of Macy’s New York City flagship in Herald Square. Similar to in-store Apple shops at Best Buy, it features light wood tables. The product line-up includes iPhones, iPads, MacBooks, and Apple watches.
"We really cater to women better than most retail stores do,” Macy’s CEO Terry Lundgren told The Associated Press. "I do think that we are going to end up creating a business that is more female-friendly."
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Warby Parker, University Village, Seattle
Warby Parker goes back to the future — design-wise at its new store in Seattle.
The design recalls the classic library-inspired aesthetic of the brand’s first-ever store in downtown Manhattan, and is outfitted with light oak shelving, spacious marble tabletops and brass detailing.
It also features exposed metal ceiling beams, concrete flooring and skylights.
Once again, Warby Parker has teamed up with artist Geoff McFetridge, who collaborated with the brand on two of its projects in Los Angeles. In Seattle, he did a bright blue mural on the store’s interior, and also a black-and-white one on the exterior.
To date, Warby Parker has opened some 35 stores.