Company to Continue to Operate Three Albertsons Stores in St. George, Utah and Salt Lake City Distribution Center
MINNEAPOLIS--(BUSINESS WIRE)--Jul. 28, 2009--
SUPERVALU (NYSE: SVU) announced today that it reached an agreement with
Associated Food Stores for the sale of the majority of its Albertsons
stores located in Utah. The sale will include 36 Albertsons stores in
Utah and their respective pharmacies and fuel centers, with the
exception of three St. George-area stores which will remain Albertsons
and continue to be operated by SUPERVALU. In connection with this
transaction, SUPERVALU is also seeking a buyer for its two Albertsons
stores in Orem, Utah and two Albertsons stores in West Jordan, Utah, and
will continue to operate those stores while a buyer is identified.
Associated Food Stores intends to rename the 36 purchased stores, and
expects to interview and offer employment to most Albertsons associates.
SUPERVALU’s Salt Lake City distribution center will remain part of
SUPERVALU and will remain open to serve Albertsons stores in Idaho,
Wyoming and Montana. The transaction, which is subject to regulatory
approval, is expected to close this fall. SUPERVALU will realize
approximately $150 million in after-tax net proceeds from the sale.
”While this was a difficult decision due to the impact on our associates
and the Utah community, the sale of these stores will allow the company
to focus on our greatest growth opportunities while at the same time
monetize non-strategic assets for debt paydown,” said Craig Herkert,
SUPERVALU CEO. “Albertsons has a long history of serving the Utah
marketplace, and the decision to sell these stores was made only after
careful analysis and deliberation. We are pleased that Associated Food
Stores plans to interview and offer employment to most Albertsons’
Founded in 1939, Albertsons was acquired by SUPERVALU in 2006.
Albertsons employs more than 3,000 associates throughout the state of
About SUPERVALU INC.
SUPERVALU INC. is one of the largest companies in the U.S. grocery
channel with estimated annual sales of $42 billion. SUPERVALU holds
leading market share positions across the United States with its
approximately 2,500 retail grocery locations, including nearly 900
in-store pharmacies. Through the company’s nationwide supply chain
network, SUPERVALU provides distribution and related logistics support
services to more than 2,500 independent retailers across the country.
SUPERVALU has approximately 180,000 employees. For more information
about SUPERVALU, visit www.supervalu.com.
Source: SUPERVALU INC.
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