Supervalu enters US grocery super-league
Albertsons has confirmed that it has entered into a definitive agreement to sell the entire company for approximately US$17.4 billion (£9.75 billion) in cash, stock and assumed debt.

The successful buyer is a consortium led by Supervalu, CVS, Cerberus Capital Management and Kimco Realty.

Albertsons shareholders will receive US$20.35 (£11.40) in cash, plus Supervalu stock for each Albertsons share, giving Albertsons shareholders an equity ownership of approximately 35 per cent of Supervalu upon completion.

Supervalu will acquire approximately 1,124 stores, including Acme Markets, Bristol Farms, Jewel-Osco, Shaw's and Star Markets outlets, plus Albertsons stores in a number of states. Also included are all of the combo-store pharmacies under the Osco and Sav-on banners. The enlarged company - with 2,656 stores in 48 states and approximately US$44 billion (£24.66 billion) in revenues - will be the second largest supermarket group in the US.

CVS will acquire 100 per cent of the standalone drugstore business, which includes approximately 700 freestanding stores.

Cerberus will acquire 655 Albertsons stores and has also purchased 26 Cub Stores from Supervalu in the Chicago area for an undisclosed sum.

The transaction is subject to approval by Albertsons and Supervalu, shareholders and customary regulatory approvals, and is expected to be complete by the middle of the year.

Topics