Thu Jan 10, 2013, 11:37 AM

Eugene (15,516 posts)

Supervalu sells grocery chains, including Albertsons, to Cerberus

Source: Los Angeles Times

http://www.latimes.com/business/money/la-fi-mo-supervalu-cerberus-albertsons-20130110,0,3572330.story

Supervalu sells grocery chains, including Albertsons, to Cerberus

By Tiffany Hsu

January 10, 2013, 8:14 a.m.

Supervalu Inc. is selling five of its top supermarket chains — Albertsons, Acme, Jewel-Osco, Shaw’s and Star Market — to an investor group owned by Cerberus Capital Management for $100 million in cash.

Cerberus’ AB Acquisition group will also acquire $3.2 billion in debt in taking over the 877 stores.

In addition, the investor group said it will try to take between a 19.9% and 30% stake in Supervalu. The tender offer of $4 a share represents a nearly 32% premium on Supervalu’s closing price Wednesday.

Eden Prairie, Minn.-based Supervalu will be left with its wholesaling business, 1,300 Save-A-Lot discount grocery stores and regional chains Cub, Farm Fresh, Shoppers, Shop ‘n Save and Hornbacher’s.

-snip-

6 replies, 418 views

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6 replies	Author	Time	Post
Supervalu sells grocery chains, including Albertsons, to Cerberus (Original post)	Eugene	Jan 2013	OP
I wonder how many of these big funds own supermarkets. nt	Mojorabbit	Jan 2013	#1
How Horrible!	Demeter	Jan 2013	#2
I won't shop at Albertson's	Speck Tater	Jan 2013	#3
wonder how long...	Moliere	Jan 2013	#4
There's nothing to pillage.	Ikonoklast	Jan 2013	#5
And pay themselves handsomely while doing it. That's where the real pot of gold is. n/t	jtuck004	Jan 2013	#6

Response to Eugene (Original post)

Thu Jan 10, 2013, 11:42 AM

Mojorabbit (12,773 posts)

1. I wonder how many of these big funds own supermarkets. nt

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Response to Eugene (Original post)

Thu Jan 10, 2013, 11:45 AM

Demeter (65,351 posts)

2. How Horrible!

I hope Cerberus loses its shirt on this deal, as it has on so many others....

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Response to Eugene (Original post)

Thu Jan 10, 2013, 12:22 PM

Speck Tater (10,618 posts)

3. I won't shop at Albertson's

Everything costs 30% more than it costs at the WinCo discount supermarket half a mile further on down the road. What costs me $30 at Alberston's cost me $20 at WinCo.

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Response to Eugene (Original post)

Thu Jan 10, 2013, 01:13 PM

Moliere (11 posts)

4. wonder how long...

... they take to get declare bankruptcy & pillage the companies

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Response to Moliere (Reply #4)

Thu Jan 10, 2013, 04:57 PM

Ikonoklast (21,620 posts)

5. There's nothing to pillage.

Cereberus assumed a shit-ton of debt with this acquisition.

They'll close the losers, spiff up the locations that make money, and sell off the divisions just as soon as they turn a profit.

They've done it before.

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Response to Ikonoklast (Reply #5)

Fri Jan 11, 2013, 08:51 PM

jtuck004 (5,070 posts)

6. And pay themselves handsomely while doing it. That's where the real pot of gold is. n/t

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