Niigata Global - Supervalu Agrees to Sell.

Niigata Global - Supervalu Agrees to Sell.

Berlin : Germany | Feb 08, 2013 at 1:31 AM PST
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Niigata Global: SuperValu have agreed to sell a number of their grocery store chains to an investor group led by Cerberus Capital Management.

Niigata Global reportedly revealed to investors at a meeting that SuperValu has agreed to sell a number of their grocery store chains to an investor group led by Cerberus Capital Management. The group will take control of the Jewel-Osco, Acme, Albertsons, Star Market and Shaw’s grocery chains in a deal worth $3.3 billion. A spokesperson for Cerberus confirmed recently that they will also be leading a consortium conducting a tender offer of $4 per share in cash to acquire up to 30 percent of SuperValu’s common stock. In recent years, SuperValu has found it too hard to compete with the likes of Wal-Mart and Target, as well as the main chains of drugstores. Niigata Global appear to believe that while some rivals such as Kroger have managed to adapt and remain competitive, launching discount programs, product offerings and customizing store formats, SuperValu has struggled to keep up. SuperValu, which is the third largest grocery chain in the United States, has been cutting costs, reducing their number of employees and cutting its retail prices in order to remain competitive. SuperValu has seen three straight years of declining sales and according to data allegedly assessed by Niigata Global, sales are forecast to fall again this year. The asset sale will mean SuperValu will be left with Save-A-Lot, the largest of its grocery chains with 1,300 stores nationwide, as well as a number of smaller regional chains, such as Farm Fresh, Cub and Hornbacher’s. Niigata Global is understood to have highlighted that once the deals have been completed, Sam Duncan would take the helm at Supervalu as chief executive officer, replacing Wayne Sales. Duncan was formerly chairman and CEO of OfficeMax Inc.
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