US: Supervaul could jettision Save-A-Lot and Albertsons
Eden Prairie-based Supervalu, which owns Cub Foods in the Twin Cities, is considering selling its Albertsons and Save-A-Lot chains to Cerberus, Bloomberg News reported Wednesday, citing unnamed sources.
Supervalu declined to comment, except to say it "continues in active [sales] discussion with several parties."
Supervalu and Cerberus teamed up in 2006 in the $17.4 billion purchase of Albertsons, a multichain company that included the flagship Albertsons brand.
For $12.4 billion, Supervalu got 1,124 traditional grocery stores under several banners across the United States, including 569 Albertsons. Cerberus got 655 underperforming Albertsons stores, of which it subsequently sold off more than 400.
St. Louis-based Save-A-Lot is a hard-discount operator specializing in private labels and is akin to Aldi, another low-price chain with relatively small stores. Save-A-Lot has about 1,200 outlets nationwide, though only two in Minnesota.
Save-A-Lot is considered one of Supervalu's most valuable assets, and one of its most marketable.
Supervalu put itself up for sale as a whole or in parts in July after several quarters of falling sales and market share, along with a rapidly declining stock. Stock analysts have expected the grocery giant, which has 11 chains, would be sold in pieces.
Source: startribune.com
