Supervalu sells grocery chains, including Albertsons, to Cerberus

[Eugene]

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.

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

[Mojorabbit]

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

[Demeter]

2. How Horrible!

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

[Speck Tater]

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.

[Moliere]

4. wonder how long...

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

[Ikonoklast]

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.

[jtuck004]

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