Thursday, January 10, 2013

Albertsons, Other Chains Sold to Cerberus For $3.3 Billion

Posted By on Thu, Jan 10, 2013 at 12:39 PM

As expected, Supervalu announced this morning that it would sell its Albertsons chain to Cerberus Capital Management, a New York-based investor group. In addition, Cerberus is buying Acme, Jewel-Osco, Shaw's and Star Market grocery stores from Supervalu for approximately $3.3 billion.

Treasure Valley businessman Joe Albertson opened his first store at 16th and State streets in Boise in 1939 before expanding across Idaho and other Western states.

Supervalu acquired the Albertsons chain in 2006 and promised to have a "significant presence" in the Treasure Valley. But those promises were followed by a series of layoffs, poor financial health, and the firing of CEO Craig Herkert in July 2012.

Supervalu employs approximately 2,300 workers at 22 Albertsons stores in Idaho, in addition to approximately 1,000 people at its Boise headquarters.

In November, Cerberus Capital Management reportedly began looking to line up capital to acquire Supervalu.

In today's announcement, Cerberus also revealed that it will lead a group to conduct a tender offer to buy as much as 30 percent of Supervalu’s common stock for $4 a share in cash. After the transactions are completed, Sam Duncan, the former chairman and chief executive officer of OfficeMax Inc. (OMX), will become CEO of Supervalu, replacing Wayne Sales.

During midday trading on the New York Stock Exchange, Supervalu stock was up 40 cents to $3.44 per share.

Supervalu traded as high as $35 per share in May 2008.

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