SUPERVALU Completes Sale of Save-A-Lot
06 December 2016 - 8:30AM
Business Wire
SUPERVALU INC. (NYSE: SVU) today announced it has finalized the
sale of its Save-A-Lot business to an affiliate of Onex Corporation
(TSX: ONEX) for $1.365 billion in cash, subject to customary
closing adjustments. With the sale of Save-A-Lot, SUPERVALU is now
a more focused company. In connection with the closing of the sale,
SUPERVALU and Save-A-Lot have entered into a five-year professional
services agreement pursuant to which SUPERVALU will continue
providing certain back office services to Save-A-Lot.
“With the successful completion of the Save-A-Lot sale, we are
well positioned for the future with a stronger balance sheet, the
opportunity to more strategically invest in our business, and the
ability to more keenly focus on our core business as a leading
grocery wholesaler,” said SUPERVALU President and CEO, Mark Gross.
“We also look forward to continuing our relationship with
Save-A-Lot as one of our important professional services
customers.”
SUPERVALU also confirmed today that it has used $750 million of
the net proceeds from the sale to prepay that portion of its
outstanding term loan balance. The Company intends to use the
remaining net sale proceeds to further reduce debt and improve its
capital structure, contribute to its pension plan, as well as to
fund corporate and growth initiatives.
Advisors
Barclays Capital Inc. and Greenhill & Co.,
LLC acted as financial advisors to SUPERVALU,
and Wachtell, Lipton, Rosen & Katz is serving as its
legal advisor.
About SUPERVALU INC.
Following today’s closing SUPERVALU is now organized into two
primary business segments, Wholesale and Retail. SUPERVALU INC. is
one of the largest grocery wholesalers and retailers in the U.S.
with annual sales of approximately $13 billion. SUPERVALU serves
customers across the United States through a network of 2,012
stores composed of 1,815 stores operated by wholesale
customers serviced primarily by the Company’s food distribution
business and 197 traditional retail grocery stores operated under
five retail banners (store counts as of September 10, 2016).
In addition, the Company operates 22 stores under the Shop ‘N Save
name in Maryland, Pennsylvania, Virginia and West Virginia.
Headquartered in Minnesota, SUPERVALU has approximately 30,000
employees. For more information about SUPERVALU visit
www.supervalu.com.
CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION
FOR THE PURPOSE OF “SAFE HARBOR” PROVISIONS OF THE PRIVATE
SECURITIES LITIGATION REFORM ACT OF 1995.
Except for the historical and factual information contained
herein, the matters set forth in this communication, particularly
those pertaining to SUPERVALU’S expectations, guidance, or future
operating results, and other statements identified by words such as
“estimates,” “expects,” “projects,” “plans,” “intends,” and similar
expressions are forward-looking statements within the meaning of
the “safe harbor” provisions of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements are subject to
risks and uncertainties that may cause actual results to differ
materially, including our ability to recognize benefits from the
sale of Save-A-Lot, our ongoing relationship with Save-A-Lot,
changes in the planned use of proceeds from the transaction and
other risk factors relating to our business or industry as detailed
from time to time in SUPERVALU’s reports filed with the
SEC. You should not place undue reliance on these
forward-looking statements, which speak only as of the date of this
news release. Unless legally required, SUPERVALU undertakes no
obligation to update or revise publicly any forward-looking
statements, whether as a result of new information, future events
or otherwise.
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version on businesswire.com: http://www.businesswire.com/news/home/20161205006263/en/
SUPERVALU INC.SUPERVALU
Investor ContactSteve Bloomquist,
952-828-4144steve.j.bloomquist@supervalu.comorSUPERVALU Media
ContactJeff Swanson,
952-903-1645jeffrey.s.swanson@supervalu.com
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