SUPERVALU Announces Plans to Sell 19 of Its 36 St. Louis-Based Shop ’n Save Stores to Schnuck Markets
MINNEAPOLIS &ST. LOUIS--(BUSINESS WIRE)--Sep 17, 2018--SUPERVALU INC. (NYSE: SVU) today announced it has entered into a definitive agreement to sell 19 of its 36 Shop ‘n Save grocery stores, primarily located in the St. Louis, Mo. area, to Schnuck Markets, Inc. The transaction is planned to occur with a staggered close process that is currently expected to finish by late October 2018, subject to customary closing conditions. As part of the acquisition, SUPERVALU and Schnucks will also enter into an agreement for SUPERVALU to serve as the primary supplier for nine of Schnucks’ existing stores located across northern Illinois, Iowa and Wisconsin.
“Since announcing plans to pursue the sale of our Shop ’n Save banner earlier this Spring, the team has worked diligently and successfully to put this agreement together,” said Mark Gross, SUPERVALU’s President and CEO. “This transaction is an important step in the continued transformation of our business. Schnucks is an excellent retailer in the St. Louis area and we’re pleased that these stores will become a part of their operation, including continuing to serve the communities and providing jobs to many of our employees.”
As part of the acquired stores, Schnucks will acquire 15 in-store pharmacy locations and one stand-alone pharmacy (16 in total) which will remain open, and prescription files at 10 other Shop ‘n Save pharmacy locations that will be transferred to other Schnucks pharmacies in the area. Customers of the Shop ‘n Save pharmacies that will close will receive detailed information on the transfer of their pharmacy files by mail within the next several days, and information will also be available at each pharmacy. Schnucks will also acquire four of Shop ’n Save’s seven fuel centers.
A complete list of stores, pharmacies and fuel centers to be sold to Schnucks under this agreement, along with a list of correlating pharmacies where prescription files will be transferred, is included in the addendum to this press release.
All Shop ‘n Save stores and fuel centers not included in this announcement currently remain open. In the event SUPERVALU cannot identify one or more buyers for these remaining stores in the near term, they will be closed later this year. Additionally, since SUPERVALU’s St. Louis Distribution Center (Hazelwood Avenue) predominantly serves Shop ‘n Save stores, SUPERVALU expects to close this distribution center later this year following the completion of this transaction and any sales or closures of the remaining Shop ’n Save stores. Employees at the remaining stores and distribution center will receive notifications and potential end dates as the Company prepares to either sell or, if not sold, close the locations. Employees affected by this change, and who continue their employment through their end date with the Company, can qualify for severance and other transition-related assistance.
Founded in 1979 and headquartered in Kirkwood, Mo., Shop ’n Save has served the St. Louis market and surrounding area for nearly 40 years, and today employs approximately 2,800 associates.
PJ SOLOMON is acting as financial advisor to SUPERVALU.
About SUPERVALU INC. SUPERVALU INC. is one of the largest grocery wholesalers and retailers in the U.S. with annual sales of approximately $15 billion. SUPERVALU serves customers across the United States through a network of 3,606 stores composed of 3,495 wholesale primary stores operated by customers serviced by SUPERVALU’s food distribution business and 111 traditional retail grocery stores in continuing operations operated under three retail banners in three geographic regions (store counts as of June 16, 2018). Headquartered in Minnesota, SUPERVALU has approximately 23,000 employees (in continuing operations). For more information about SUPERVALU visit .
Forward Looking Statements
CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995.
Except for the historical and factual information, the matters set forth in this news release, particularly those pertaining to the expected completion of the sales of Shop ’n Save stores (including the timing thereof), the ability to consummate the sales and SUPERVALU’s expectations, guidance, or future operating results, and other statements identified by words such as “estimates” “expects,” “projects,” “plans,” “intends,” “outlook” and similar expressions are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the ability to satisfy the closing conditions and close the proposed sales on a timely basis or at all, the possibility that modifications to the terms of the transactions may be required, business disruption, ability to effectively retain key employees and ability to effectively manage organization changes during the pendency of or following the transactions, and other risk factors relating to the business or industry as detailed from time to time in SUPERVALU’s reports filed with the SEC. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this news release. For more information, see the risk factors described in SUPERVALU’S Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and other filings with the SEC. Unless legally required, SUPERVALU undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
NOTE: Within the next several days, customers of these Shop ‘n Save pharmacies will receive by mail detailed information on the transfer of their pharmacy files and information will also be available at each Shop ’n Save pharmacy.
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Steve Bloomquist, 952-828-4144
Jeff Swanson, 952-903-1645
KEYWORD: UNITED STATES NORTH AMERICA ILLINOIS IOWA MINNESOTA MISSOURI WISCONSIN
INDUSTRY KEYWORD: CONVENIENCE STORE SUPPLY CHAIN MANAGEMENT RETAIL FOOD/BEVERAGE SUPERMARKET
SOURCE: SUPERVALU INC.
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PUB: 09/17/2018 06:29 PM/DISC: 09/17/2018 06:29 PM