US grocery retailer Supervalu has announced it has signed an agreement to sell its minority ownership interest in WinCo Foods, a privately-held regional grocery chain that operates stores in Idaho, Oregon, Nevada, Washington and California.
Supervalu expects to receive after-tax proceeds of approximately US$150m on the sale and said it will utilise the proceeds to reduce debt.
The company said the net impact of these items is expected to increase Supervalu’s fiscal 2005 net earnings by approximately $0.40 per share. In fiscal 2005, the company expects to report a one-time after-tax gain on the sale of approximately $0.50 per share. Fiscal 2005 net earnings will also include a reduction of approximately $0.10 per share, reflecting the elimination of WinCo’s non-cash equity earnings, partially offset by interest savings from reduced debt, Supervalu said.