US: Supervalu to sell off five chains to PE firm Cerberus
The deal includes Supervalu's Albertson's, Acme, Jewel-Osco, Shaw's and Star Market stores
US retailer Supervalu Inc has agreed to sell five of its supermarket chains to AB Acquisition, an investor group led by Cerberus Capital Management.
The deal, announced today (10 January), includes the group's Albertson's, Acme, Jewel-Osco, Shaw's and Star Market stores in a deal worth $3.3bn, including $100m cash. Around 877 stores are included in the deal.
As part of the agreement, Cerberus will offer to buy up to 30% of Supervalu's remaining stores for $4 per share after the deal closes.
The announcement ends months of speculation that all or parts of the troubled grocery chain would be sold to New York-based Cerberus.
In 2012, Supervalu revealed it was conducting a strategic review of its business in response to falling sales and profits.
Private-equity firm Cerberus Capital Management, which earlier this year bought five food retail chains from Supervalu Inc, is said to be looking at more targets - including regional grocer Harris Tee...
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