SUPERVALU INC. : SUPERVALU Board of Directors Installs Sam Duncan as President and Chief Executive Officer
02/04/2013| 08:35am US/Eastern
Recommend:
Duncan assumes executive role effective immediately; Wayne Sales to
remain executive chairman of the board until closing of pending
transaction
SUPERVALU (NYSE: SVU) today announced that Sam K. Duncan will become
president and chief executive officer, effective immediately. In this
role he succeeds Wayne Sales, who has served as the Company's president
and chief executive officer since July 2012. Last month, SUPERVALU
announced an agreement with AB Acquisition LLC to sell five of its
retail banners as well as enter into an agreement with Symphony
Investors LLC to conduct a tender offer for up to 30 percent of
SUPERVALU's outstanding common stock at a purchase price of $4.00 per
share in cash. Both AB Acquisition LLC and Symphony Investors LLC are
Cerberus Capital Management-led entities. SUPERVALU had previously
announced that Mr. Duncan would assume the role of president and chief
executive officer upon closing of the transaction. Mr. Sales oversaw
SUPERVALU's review of strategic alternatives, and as executive chairman,
will continue to have oversight over the completion of the transaction.
At the closing of the transaction, Robert Miller, current president and
CEO of Albertsons LLC, will become SUPERVALU's non-executive chairman.
"Sam is a talented and respected executive with a wealth of industry
experience," said Mr. Sales. "The Board decided to install Sam as
president and chief executive officer before the completion of our
previously announced transaction so he can start refining and where
appropriate implement plans for the business. I fully support this
decision and look forward to working with Sam to ensure a smooth
transition."
Commenting on his appointment Mr. Duncan said, "Following January's
announcement, I have visited stores, spoken with many of our independent
retailers and Save-a-Lot licensees, and met many team members. These
activities have reinforced my belief that SUPERVALU has a bright future;
and I'm excited to start putting in place plans to improve our results
and increase shareholder value."
Mr. Duncan, 61, most recently served from 2005-2011 as chairman, CEO and
president of OfficeMax, the third-largest office supplies retailer in
North America with over $7 billion in revenues and more than 1,000
stores in the United States, Mexico, Puerto Rico & the US Virgin
Islands. Prior to joining OfficeMax, Mr. Duncan served from 2002-2005 as
president and CEO of ShopKo Stores, a $3 billion Midwest retailer. In
these roles, Duncan successfully led publicly-traded companies though
growth and financial improvement efforts, resulting in stronger
organizations and improved shareholder value. He has over 40 years of
experience in the retail industry, including nearly 30 years with
Albertsons and Kroger in positions of increasing responsibility.
As part of today's announcement, SUPERVALU also reaffirmed that the
closing of the previously announced sale and tender offer process is
expected to occur the week of March 18th.
About SUPERVALU INC.
SUPERVALU INC. is one of the largest companies in the U.S. grocery
channel with annual sales of approximately $35 billion. SUPERVALU serves
customers across the United States through a network of approximately
4,350 stores composed of 1,068 traditional retail stores, including 778
in-store pharmacies; 1,329 Save-A-Lot stores, of which 946 are operated
by licensee owners; and 1,950 independent stores serviced primarily by
the Company's food distribution business. SUPERVALU has approximately
125,000 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 news release,particularly those pertaining
to SUPERVALU's expectations, guidance, or future operating results, and
other statements identified by words such as "estimates," "expects,"
"projects," "plans," 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 competition, ability to execute
initiatives, substantial indebtedness, impact of economic conditions,
labor relations issues, escalating costs of providing employee benefits,
regulatory matters, food and drug safety issues, self-insurance, legal
and administrative proceedings, information technology, severe weather,
natural disasters and adverse climate changes, the continuing review of
goodwill and other intangible assets, accounting matters 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.
Additionally, this communication is neither an offer to purchase nor
a solicitation of an offer to sell any shares of the common stock of the
Company. This presentation is for informational purposes only.
Symphony Investors LLC has filed a tender offer statement on Schedule
TO, including an offer to purchase, a letter of transmittal and related
documents, and the Company has filed a statement on Schedule 14D-9 with
respect to the tender offer, with the Securities and Exchange Commission
(SEC). Shareholders should read those materials carefully because
they contain important information, including the various terms and
conditions of the tender offer. Shareholders may obtain a free
copy of these documents and other documents filed by the Company with
the SEC at the website maintained by the SEC at www.sec.gov.
In addition, shareholders may obtain a free copy of these documents
by contacting the Company's Investor Relations department at 7075 Flying
Cloud Drive, Eden Prairie, Minnesota 55344, (952) 828-4000.
SUPERVALU Inc.
Investor Contact
Steve
Bloomquist, 952-828-4144
steve.j.bloomquist@supervalu.com
or
Media
Contact
Mike Siemienas, 952-828-4245
mike.siemienas@supervalu.com
© Business Wire 2013
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