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|SUPERVALU Completes Acquisition of Deal$ -- Nothing Over a Dollar, LLC|
MINNEAPOLIS, May 20 /PRNewswire-FirstCall/ --
SUPERVALU INC. (NYSE: SVU) announced today it has completed its acquisition of Deal$ -- Nothing Over a Dollar, LLC, a general merchandise retailer specializing in single price point merchandise. At closing, Deal$ operated 53 stores across eight Midwestern states.
Jeff Noddle, SUPERVALU president and chief executive officer said, "We are excited to introduce a general merchandise strategy into our breakthrough grocery format Save-A-Lot through the acquisition of Deal$. By following the same disciplined approach that secured Save-A-Lot's leadership position, we can positively influence the growth of our extreme value retail business over the long term."
Save-A-Lot's entire store network will expand by approximately 150 stores in fiscal 2003 representing approximately 100 new Save-A-Lot's and the addition of the Deal$ store base. The acquisition is included in SUPERVALU's previously announced capital spending plan of $500 - $525 million and is expected to be earnings neutral in fiscal 2003.
Deal$ is a St. Louis-based extreme value general merchandise retailer operating 53 stores in eight states, which are supported by one primary distribution center in Illinois. With an average store size of approximately 9,000 square feet, Deal$ offers an assortment of single price point general merchandise and food items. Deal$ opened its first store in 1999 and competes effectively in the dollar store niche. The Deal$ management team, with retail experience spanning several decades, developed its dollar price point format after successfully running other retail operations in Missouri and Illinois.
As of February 23, 2002, SUPERVALU's retail store network consisted of 1,260 stores in 39 states, including 998 Save-A-Lot extreme value food stores, of which 764 were licensed stores; 202 price superstores including Cub Foods, Shop 'n Save, Shoppers Food Warehouse, Metro and bigg's stores; and 60 conventional supermarkets including Farm Fresh, Scott's Foods, and Hornbacher's stores.
SUPERVALU is the one of the largest companies in the United States grocery channel. With annual revenues in excess of $20 billion, SUPERVALU holds leading market share positions with its 1,260 retail grocery locations, including licensed Save-A-Lot locations. Through its Save-A-Lot format, the Company holds the number one market position in the extreme value grocery retailing sector. In addition, through SUPERVALU's geographically diverse distribution centers, the Company provides distribution and related logistics support services across the nation's grocery channel. SUPERVALU also serves as primary supplier to approximately 2,750 supermarkets and 31 Cub Foods franchised locations, while serving as secondary supplier to approximately 1,500 stores. At year-end, SUPERVALU had approximately 57,800 employees.
Forward-looking statements in this news release, if any, are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Certain important factors could cause results to differ materially from those anticipated by such forward-looking statements, including the impact of competition, the nature and extent of the consolidation of the retail food and food distribution industries, the ability to attract and retain customers for the Company's food distribution operations and to control food distribution costs, the ability of the Company to grow through acquisition and assimilate the acquired entities, the execution of restructuring activities, potential work disruptions from labor disputes or national emergencies, the availability of favorable credit and trade terms, food price changes, general economic or political conditions that affect consumer buying habits generally or acts of terror directed at the food industry that affects consumer behavior, other risk factors inherent in the food distribution and retail businesses and other factors discussed from time to time in reports filed by the Company with the Securities and Exchange Commission.
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