Supervalu soaks up Albertson’s

first_imgMINNEAPOLIS – Supervalu Inc. completed its acquisition of more than 1,100 Albertson’s Inc. stores Friday, making it the nation’s third-largest supermarket chain by revenue. Shareholders from both companies approved the purchase on Tuesday. The deal gained approval from 98 percent of voting Albertson’s shareholders and 92.6 percent of Supervalu shareholders. Supervalu led a consortium that included drugstore chain CVS Corp., private equity firm Cerberus Capital Management and others to buy Albertson’s for $9.7 billion in cash and stock, plus assumed debt, bringing the total transaction to about $17.4 billion. Supervalu has been a strong presence in grocery sales and distribution in the Midwest and East. With the new stores, it moves into the Western U.S. and trails only Kroger and Safeway in size. AD Quality Auto 360p 720p 1080p Top articles1/5READ MORE11 theater productions to see in Southern California this week, Dec. 27-Jan. 2However, Wal-Mart Inc. sells more groceries than any of them. With closure of the deal, Supervalu has 2,500 stores, up from 1,381 before. It also has 900 in-store pharmacies. The newly acquired store brands include Aceme Markets, Bristol Farms, Jewel, Shaw’s Supermarkets, Star Markets and Albertsons banner stores. Jeff Noddle, Supervalu chairman and chief executive officer, said the deal creates a company with leading positions in several major markets and a supply chain to fuel both its own retail operations and independent customers. “Today, we are a stronger retailer that’s well-positioned for the future,” he said in a prepared statement. CVS said it acquired 700 standalone Sav-On and Osco drugstores and a distribution center in La Habra in the deal. CVS CEO Tom Ryan said in a prepared statement: “This acquisition strengthens our position in key Midwest markets and provides an immediate leadership position in the fast-growing Southern California markets.” Shares of Supervalu fell 35 cents, or 1.1 percent, to close at $29.40 on the New York Stock Exchange, while shares of CVS rose 67 cents, or 2.35 percent, to $29.24 on the same exchange.160Want local news?Sign up for the Localist and stay informed Something went wrong. Please try again.subscribeCongratulations! You’re all set!last_img

Leave a Reply

Your email address will not be published. Required fields are marked *