Sale of Acme chain is part of larger deal
Supervalu Inc. on Thursday said it reached a deal to sell five of its biggest grocery Nike Shox R5 Australia chains, including East Whiteland headquartered Acme, after years of being squeezed by intensifying competition.
The New York City investor group will pay $100 million in cash for the stores, and the new company will assume $3.2 billion in existing debt. Cerberus Capital Management will also offer to buy up to 30 percent of the remaining Supervalu for $4 per share after the deal closes.
The nation No. 3 traditional supermarket operator said that the sale of 877 stores to an investor group led by Cerberus will also include Albertsons, Jewel Osco, Shaw and Star Market. The group already owns about 200 Albertsons stores in the Buy Longchamp Le Pliage Online South and Southwest.
Acme operates 112 Nike Shox Nz stores, including eight in Chester County and one in nearby Glen Mills. Company wide, both in stores and at its corporate headquarters in Great Valley, Acme has 10,000 employees, said Mike Siemienas, Supervalu spokesman.
Christine Wilcox, public affairs director at Albertsons LLC, said the buyer has immediate plans for any change in banners, store closures, layoffs or name changes. The transaction is still subject to regulatory approvals, Wilcox noted.
banners have a very strong brand value and great associates, Wilcox said.
Wilcox said the customary approvals are expected to be secured by mid March.
Following the sale, Supervalu will focus on its Save A Lot discount stores, as well as its smaller regional chains Cub, Farm Fresh, Shoppers, Shop Save and Hornbacher It will also keep its wholesale business that distributes groceries to stores.
Supervalu has struggled for years to turn around its business. The broader supermarket industry has been facing growing competition from big box retailers such as Target, drugstore chains and dollar stores. While bigger chains such as Kroger Co. have adapted by tweaking store formats and improving discount Nike Runners programs and product offerings, Nike Air Max Supervalu has scrambled to keep pace.
This summer, Supervalu fired its CEO and tapped Chairman Wayne Sales to lead a turnaround. The company said at the time that it was reviewing its options, such as putting itself up for sale. In the meantime, it has closed stores and cut jobs as part of an effort to reduce costs. Those efforts to fix its business will continue after the sale of its grocery chains is complete, the company said. Sam Duncan, who most recently was CEO of OfficeMax, will replace Sales as head of Supervalu after the deal closes. Continued.2
On Thursday, Supervalu also reported a profit of $16 million, or 8 cents per share, for the third quarter. The results were boosted by a gain related to a settlement with credit card companies. A year ago, the company Longchamp Online Shopping Australia lost $750 million, or $3.54 per share.
However, total revenue for the period declined 5 percent to $7.9 billion. Sales at locations open at least a year fell 4.5 percent, and 4.1 percent at Save A Lot. Its profit margins also fell, in part because the company said it boosted promotions and cut prices for shoppers.
Bob Miller, who heads the Albertsons already owned by the Cerberus led investment group, said the performance at the newly acquired Albertsons stores could be improved.
2006, we acquired a set of stores that lacked investment and were in tough shape, he said, noting that those stores have grown into a regional supermarket chain with growing sales.
Associated Press reports contributed to this story.2
Supervalu Inc. on Thursday said it reached a deal to sell five of its biggest grocery chains, including East Whiteland headquartered Acme, after years of being squeezed by intensifying competition.
The New York City investor group will pay $100 million in cash for the stores, and the new company will assume $3.2 billion in existing debt. Cerberus Capital Management will also offer to buy up to 30 percent of the remaining Supervalu for $4 per share after the deal closes.
The nation No. 3 traditional supermarket operator said that the sale of 877 stores to an investor group led by Cerberus will also include Albertsons, Jewel Osco, Shaw and Star Market. The group already owns about 200 Albertsons stores in the South and Southwest.
Acme operates 112 stores, including eight in Chester County and one in nearby Glen Mills. Company wide, both in stores and at its corporate headquarters in Great Valley, Acme has 10,000 employees, said Mike Siemienas, Longchamp Tote Australia Supervalu spokesman.
Christine Wilcox, public affairs director at Albertsons LLC, said the buyer has immediate plans for any change in banners, store closures, layoffs or name changes. The transaction is still subject to regulatory approvals, Wilcox noted.
banners have a very strong brand value and great associates, Wilcox said.
Wilcox said the customary approvals are expected Longchamp Shop Australia to be secured by mid March.
Following the sale, Supervalu will focus on its Save A Lot discount stores, as well as its smaller regional chains Cub, Farm Fresh, Shoppers, Shop Save and Hornbacher It will also keep its wholesale business that distributes groceries to stores.
Supervalu has struggled for years to turn around its business. The broader supermarket industry has been facing growing competition from big box retailers such as Target, drugstore chains and dollar stores. While bigger chains such as Kroger Co. have adapted by tweaking store formats and improving discount programs and product offerings, Supervalu has scrambled to keep pace.
This summer, Supervalu fired its CEO and tapped Chairman Wayne Sales to lead a turnaround. The company said at the time that it was reviewing its options, such as putting itself up for sale. In the meantime, it has closed stores and cut jobs as part of an effort to reduce costs. Those efforts to fix its business will continue after the sale of its grocery chains is complete, the company said. Sam Duncan, who most recently was CEO of OfficeMax, will replace Sales as head of Supervalu after the deal closes.
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