Onex to Acquire Save-A-Lot from SUPERVALU (SVU) for $1.365B
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Onex (OCX: T) has agreed to acquire the Save-A-Lot business from SUPERVALU INC. (NYSE: SVU) for $1.365 billion. Save-A-Lot is one of the largest hard-discount grocery retailers for value-seeking shoppers in the United States. The transaction is anticipated to close by January 31, 2017 subject to customary conditions and regulatory approvals.
Headquartered in St. Louis, Save-A-Lot has a network of approximately 1,370 corporate-owned and licensed stores across 37 states, the Caribbean and Central America. Save-A-Lot stores serve more than five million shoppers each week and offer customers savings of 30% or more compared to traditional grocery stores.
"Save-A-Lot provides its customers with measurable savings and is differentiated among its competitors in a growing segment of the industry," said Matt Ross, a Managing Director with Onex. "We are excited to partner with the management team at Save-A-Lot, along with its licensed store owners, to enhance the company's operations and support its growth for years to come."
"This is an exciting development in the history of Save-A-Lot," said Eric Claus, Save-A-Lot's Chief Executive Officer. "As an independent company, we can more effectively focus on our growth and operating objectives. Onex's experience and successful investment track record, specifically in corporate carve-outs, positions it as a strong partner for us, and we look forward to working with them."
"Save-A-Lot is a terrific organization with a wonderful history and a bright future as part of Onex," said Mark Gross, SUPERVALU's President and Chief Executive Officer. "We're looking forward to continuing our relationship with Save-A-Lot as their professional services provider. This is a great outcome for the company's employees, licensees and customers."
Onex Partners IV will make an equity investment of approximately $660 million, of which Onex' share is approximately $190 million as a limited partner in the Fund.
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