SUPERVALU Inc. announced yesterday that it will sell its Albertsons, Acme, Jewel-Osco, Shaw's and Star Market stores (as well as related Osco and Sav-on in-store pharmacies) to AB Acquisition LLC, an affiliate of an investor group led by Cerberus Capital Management L.P. The transaction is valued at $3.3 billion.
Also announced was leadership of the new company: grocery retail veteran Sam Duncan will be named SUPERVALU President and CEO in February, while current Albertson's head Bob Miller will be appointed Non-Executive Chairman of the Board.
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Following the sale, SUPERVALU will consist of the Independent Business, a leading food wholesaler which serves 1,950 stores across the country; Save-A-Lot, the largest hard discount grocery chain in the U.S., with approximately 1,300 stores; and SUPERVALU's leading regional retail food banners Cub, Farm Fresh, Shoppers, Shop 'n Save and Hornbacher's. As such, SUPERVALU is expected to generate annual revenues in excess of $17 billion.