Wal-Mart grocery competitor, Supervalu Inc. said Thursday (Jan. 10) it agreed to sell its Albertsons, Acme, Jewel-Osco, Shaw’s and Star Market stores and their related pharmacies to AB Acquisition LLC.
The deal is valued at $3.3 billion – $100 million in cash and $3.2 billion in debt which will be retained by the new Albertsons. Cerberus Capital Management is the investment consortium that controls AB Acquisitions.
This sale also prompted a leadership change at Supervalue. Sam Duncan will replace Wayne Sales as Supervalu’s CEO and president.
Following the acquisition, Albertsons and its subsidiaries will consist of 1,069 stores and 12 distribution centers, and employ approximately 110,000.
Supervalu is a food wholesaler with 1,950 stores; Save-A-Lot, a discount grocery chain with approximately 1,300 stores; and regional retail food banners Cub, Farm Fresh, Shoppers, Shop ‘n Save and Hornbacher’s.