Su­pervalu to sell Save-A-Lot chain

Baltimore Sun - - BUSINESS MARYLAND -

Su­pervalu said Mon­day that it is sell­ing its Save-A-Lot dis­count su­per­mar­ket chain for $1.37 bil­lion to Cana­dian pri­vate eq­uity firm Onex Corp.

Save-A-Lot op­er­ates 16 Bal­ti­more-area stores, mostly in the city, but also in Ar­bu­tus, Dun­dalk, Edge­wood, Essex and Havre de Grace.

The deal is ex­pected to close be­fore the end of Jan­uary.

“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, in the an­nounce­ment of the deal. “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.”

There are more than 1,300 Save-A-Lot gro­cery stores in 37 states as well as the Ba­hamas, Do­minica and Trinidad and Tobago. The Mis­souri-based chain was founded in 1977, rapidly grow­ing to more than 1,000 stores, and ac­quired by Su­pervalu in 1994.

Su­pervalu, an Eden Prairie, Minn., dis­trib­u­tor of gro­cery items and ser­vice provider for su­per­mar­kets, first an­nounced plans to sell off Save-A-Lot last year to focus on de­vel­op­ing its dis­tri­bu­tion busi­ness.The com­pany also owns the Shop ’N Save and Cub Foods chains.

“As an independent com­pany, we can more ef­fec­tively focus on our growth and op­er­at­ing ob­jec­tives,” Eric Claus, Save-ALot’s CEO, said in a state­ment.

Su­pervalu said it signed a five-year deal with Save-A-Lot to pro­vide cloud tech­nol­ogy, as well as pay­roll, fi­nance and mer­chan­dis­ing tech­nol­ogy ser­vices. The com­pany said it will use some of the money from the sale to pay down debt.

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