SuperValu sells five retail grocery banners for $3.3B

theflyonthewall.com

SuperValu completed the sale of its Albertsons, Acme, Jewel-Osco, Shaw’s and Star Market stores and related Osco and Sav-on in-store pharmacies to AB Acquisition LLC, an affiliate of a Cerberus Capital Management L.P.-led investor consortium, in a stock deal valued at $3.3B, including $100M in cash and $3.2B in debt assumption. Operations for these banners will transfer overnight, and the new SuperValu will open for business on Friday as a company with annual sales of approximately $17B. As part of the transaction, Symphony Investors completed its tender offer resulting in the acquisition of 11,686,406 shares (approximately 5.475% of SuperValu’s outstanding common stock) at a purchase price of $4.00 per share in cash. In addition, the company issued 42,477,692 million new shares of common stock (approximately 19.9% of the outstanding shares) to Symphony Investors at a purchase price of $4.00 per share in cash to the company, or approximately $170M. The tender offer and primary stock issuance establish Symphony Investors as SuperValu’s largest shareholder with 21.2% of total outstanding common shares.

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