Artichokes

Investors

News Release

Printer Friendly Version View printer-friendly version
<< Back
SUPERVALU Announces Sale of Albertsons Stores in Utah
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’ associates.”

Founded in 1939, Albertsons was acquired by SUPERVALU in 2006. Albertsons employs more than 3,000 associates throughout the state of Utah.

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.

SUPERVALU INC.
Media:
Haley Meyer - National - 952-828-4786
haley.meyer@supervalu.com
or
Lilia Rodriguez – Local - 714-306-5408
Lilia.rodriguez@supervalu.com