SuperValu announced that it is selling Jewel-Osco and four other grocery stores to AB Acquisition in a transaction valued at $3.3 billion. The sale — which involves 877 stores — also includes Albertsons, Acme, Shaw’s and Star Market stores and related Osco and Sav-on in-store pharmacies, reports the Chicago Sun-Times.
AB Acquisition LLC is an affiliate of an investor consortium led by Cerberus Capital Management. The group will acquire the stores for $100 million in cash, and the new company will assume $3.2 billion in existing debt.
Following the sale, SuperValu will consist of a food wholesaler, Save-A-Lot, and regional chains Cub, Farm Fresh, Shoppers, Shop ‘n Save and Hornbacher’s. SuperValu said grocery retail veteran Sam Duncan will replace CEO and Chairman Wayne Sales after the sale.
Sources: Chicago Sun-Times, Associated Press