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
“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.
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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