Two Directors designated by Symphony Investors step down; replacement
Directors will be designated by Symphony Investors and are expected to
MINNEAPOLIS--(BUSINESS WIRE)--Mar. 6, 2014--
SUPERVALU INC. (NYSE: SVU) today announced that two of its directors,
Mark Neporent and Lenard Tessler, have stepped down from the Board of
Directors effective immediately. Mr. Neporent and Mr. Tessler were both
appointed to the Board in 2013 as designees of Symphony Investors LLC, a
Cerberus Capital Management L.P.-led investor consortium, under the
terms of the Tender Offer Agreement entered into with Symphony Investors
and Cerberus in connection with SUPERVALU’s sale of five banners to an
affiliate of Symphony Investors. Symphony Investors owns approximately
20.9 percent of SUPERVALU’s outstanding common stock. Under the terms of
the Tender Offer Agreement, Symphony Investors has the right to
designate replacement directors for Mr. Neporent and Mr. Tessler.
Mr. Neporent is the chief operating officer and general counsel for
Cerberus Capital Management, L.P. Mr. Tessler is the co-head of global
private equity and senior managing director of Cerberus Capital
Management. Mr. Neporent’s and Mr. Tessler’s resignations followed
today’s announcement of a definitive agreement under which AB
Acquisition LLC, an entity controlled by a Cerberus-led investor group,
will acquire all outstanding shares of food retailer Safeway Inc. Mr.
Neporent stated that, “In light of the transaction announced today, we
felt it was in the best interests of SUPERVALU for us to resign our
seats on the SUPERVALU Board. The directors who will be designated to
replace Lenard and me under the Tender Offer Agreement are expected to
be independent of both Cerberus and SUPERVALU and will add to
SUPERVALU’s outstanding board.”
Commenting on the change in the Board, SUPERVALU’s Non-Executive
Chairman Gerald Storch said, “I would like to thank Mark and Lenard for
serving on SUPERVALU's Board of Directors and for their important
contributions during the transition period following the banner sale. We
look forward to working with Cerberus to identify two new,
highly-qualified director designees to replace Mark and Lenard, and who
will help to lead our organization into the future.”
Sam Duncan, Chief Executive Officer of SUPERVALU, said, “I also would
like to thank Mark and Lenard for their service. As the process moves
forward to designate new Directors, we are continuing our focus on
driving sales and serving all of our customers, including providing
services under the Transition Services Agreements with Albertsons LLC
and New Albertsons, Inc.”
SUPERVALU’s Board currently has nine members, including seven members
who are independent directors under the New York Stock Exchange listing
About SUPERVALU INC.
SUPERVALU INC. is one of the largest
grocery wholesalers and retailers in the U.S. with annual sales of
approximately $17 billion. SUPERVALU serves customers across the United
States through a network of 3,358 stores composed of 1,834 independent
stores serviced primarily by the Company’s food distribution business,
1,334 Save-A-Lot stores, of which 954 are operated by licensee owners;
and 190 traditional retail grocery stores. Headquartered in Minnesota,
SUPERVALU has approximately 35,000 employees. For more information about
SUPERVALU visit www.supervalu.com.
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 contained herein,
the matters set forth in this news release, particularly those
pertaining to SUPERVALU’s expectations, guidance, or future operating
results, and other statements identified by words such as "estimates,"
"expects," "projects," "plans," 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
competition, ability to execute initiatives, substantial indebtedness,
impact of economic conditions, labor relations issues, escalating costs
of providing employee benefits, regulatory matters, food and drug safety
issues, self-insurance, legal and administrative proceedings,
information technology, severe weather, natural disasters and adverse
climate changes, tax matters, the continuing review of goodwill
and other intangible assets, accounting matters, the effect of the sale
of the New Albertsons banners, fluctuations in our common stock price
and other risk factors relating to our 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. 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.
Source: SUPERVALU INC.
Jeff Swanson, 952-903-1645