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.
Supervalu stock was up as much as 19% Thursday, reaching $3.62 a share.
Sam Duncan, a longtime grocery industry veteran, will replace Wayne Sales as Supervalu’s president and chief executive once the acquisition closes. The Supervalu board will shrink from 10 members to seven once the deal goes through, with five current directors set to resign and a Cerberus-led investor consortium poised to choose two others.