Supervalu to Sell Jewel-Osco Stores
Deal is expected to be finalized this spring.
Jewel-Osco parent company Supervalu on Thursday announced it will sell the grocery store chain — along with its Albertsons, Acme, Shaw’s and Star Market chains — in a $3.3 billion deal.
The grocery stores, plus affiliated in-store Osco and Sav-On pharmacies, are being sold to a consortium of investors led by Cerberus Capital Management, according to the Minnesota-based Supervalu.
The deal, which includes $100 million in cash and $3.2 billion in debt, is expected to close this spring, according to the Chicago Tribune. The five grocery store chains will be acquired by Cerberus affiliate AB Acquisition, the paper reported.
After the sale, Sam Duncan will replace current CEO Wayne Sales. Supervalu will continue to own its wholesale grocery business, the Save-A-Lot discount chain and grocery chains including Cub, Shop N’ Save and Hornbacher’s.
“The transactions announced today represent the successful culmination of the in-depth strategic review process we commenced this past summer,” outgoing CEO Sales said in a press release.
Supervalu reported a loss of $1.04 billion for fiscal 2012, which included a $519 million operating loss. Sales also declined 3 percent, to $27.9 billion.