Supervalu has reached a definitive agreement to sell off stores under five brands and two related in-store pharmacy brands as part of a $3.3 billion agreement that will also bring in former OfficeMax head Sam Duncan as the new Supervalu CEO and president, the company announced Thursday.
“I am excited by the opportunity to lead Supervalu,” a news release quoted Duncan. “The company has very solid market positions and I see great potential in our ability to successfully build on each of these three core businesses.”
AB Acquisition, an affiliate of a Cerberus Capital Management L.P.-led investor consortium, will acquire Supervalu stores under the following brands:
It will also acquire related Osco and Sav-on in-store pharmacies.
That will leave Supervalu with Cub, Save-A-Lot, Farm Fresh, Shoppers, Shop ‘n Save and Hornbacher’s stores. Following the sale, the wholesaler will serve 1,950 stores across the country. It expects to generate more than $17 billion in revenue annually.
The company will continue to be headquartered in Eden Prairie, Supervalu spokesman Mike Siemienas said. When asked whether the deal would affect job numbers at the headquarters, he said the company will continue to make decisions that allow for efficiencies and that it will provide information as those decisions are made.
Siemienas said the Hopkins warehouse will continue to be operated as it currently is.