Supervalu has completed its acquisition of Unified Grocers, Inc. in a transaction valued at $390 million. Financing for the transaction includes $114 million in cash for 100% of the outstanding shares of Unified Grocers plus Supervalu has agreed to pay off Unified Grocers’ outstanding net debt, which is about $276 million.
|Mark Gross, president and c.e.o. of Supervalu|
“The completion of this transaction is a significant step forward for Supervalu and the growth of our wholesale business,” said Mark Gross, president and chief executive officer of Supervalu. “Our teams are fully engaged in the important work of integrating these two great organizations with a continued focus on delivering for our customers and stockholders. We’re excited about working with the many talented associates to supply and serve our expanded and highly diverse customer base.”
Supervalu is one of the largest grocery wholesalers and retailers in the United States with annual sales of approximately $13 billion. Unified Grocers, a retailer-owned wholesale grocery distributor that supplies independent retailers throughout the western U.S., reported annual sales of about $3.8 billion. Supervalu will maintain Unified Grocers’ headquarters in Commerce along with management and employees.
The combined companies will operate 24 distribution centers that supply customers in 46 states and serve a customer base of more than 3,000 stores. The merger is expected to open new avenues for growth such as the expansion of Unified Grocers’ Market Centre division which provides specialty and ethnic products to independent retailers.
Separately, Supervalu announced that Bruce Besanko has tendered his resignation, effective July 5. Mr. Besanko is executive vice-president, chief operating officer and chief financial officer. Rob Woseth, executive vice-president and chief strategy officer, has been named interim c.f.o., while David Johnson, vice-president and controller, will assume the additional position of interim chief accounting officer.“On behalf of Supervalu, I want to thank Bruce for his service over the past four years,” Mr. Gross said. “Bruce made numerous contributions to this organization, including improvements to the company’s capital structure that have laid the groundwork for our transformation. We wish Bruce well in his future endeavors. Rob and David are important leaders at the company, and I am very pleased that they will assume these interim roles.”