Independent retailers Jerry’s Enterprises, Lund Food Holdings,
Inc., Haug Enterprises and Radermacher Enterprises also sign acquisition
MINNEAPOLIS--(BUSINESS WIRE)--May 7, 2014--
SUPERVALU INC. (NYSE: SVU), the owner of CUB Foods, along with four Twin
Cities-based independent grocery retailers, today announced they had
each entered into definitive agreements to acquire certain Rainbow Foods
grocery stores. In total, they agreed to acquire 18 Rainbow grocery
stores, including 13 Rainbow pharmacies and three Rainbow liquor stores
in Minnesota. Jerry’s Enterprises, Haug Enterprises, Lund Food Holdings,
and Radermacher Enterprises have joined SUPERVALU in executing these
agreements. Once completed, the acquired stores are intended to be
operated by SUPERVALU, a Cub franchisee or an independent retailer as 10
new CUB Foods locations, two new Byerly’s locations and six locations
are expected to be operated under the Rainbow banner.
Of the 18 stores, SUPERVALU will have 100 percent ownership in three CUB
stores, majority ownership in two CUB stores, minority ownership in
three CUB stores and 100 percent ownership in two Rainbow stores as well
as 100 percent ownership interest in eleven pharmacies. Roundy’s will be
selling these 18 stores for approximately $65 million plus inventory.
SUPERVALU’s aggregate purchase price across its multiple purchase
agreements is approximately $35 million in cash plus the cost of
inventory that will be purchased at the closing of the Rainbow store
sale. In addition, as part of the transactions, SUPERVALU will assume
certain lease obligations and certain multi-employer pension liabilities
related to the stores being acquired by SUPERVALU.
“SUPERVALU is thrilled to participate in this consortium of retailers
that is acquiring Rainbow stores,” said Sam Duncan, SUPERVALU’s
president and chief executive officer. “We’re especially pleased that
highly respected independent retailers here in the Twin Cities are also
acquiring Rainbow stores. These independent retailers are great
customers to SUPERVALU who understand the importance of being a strong
CUB Foods consists of a combination of corporate-owned and franchised
locations. Following the close of the transactions, CUB Foods will total
66 stores in the Twin Cities and 77 stores banner-wide (including 76
stores in Minnesota and one store in Illinois). As part of acquiring
these stores and with seasonal employment needs, CUB Foods expects to
make more than 1,000 job offers in the coming months.
“For nearly five decades, CUB Foods has been a trusted grocer and
innovator in the Twin Cities,” said Mike Stigers, CUB Foods president.
“This community has always been important to us and it is our continued
desire to deliver great products, excellent service and an incredible
overall value in the grocery store. With more stores under the CUB Foods
brand and being serviced out of our distribution center in Hopkins, we
will be better positioned to improve our efficiencies and explore ways
to bring even stronger value and price competitiveness to our shoppers
The transactions are subject to customary closing conditions and are
expected to be completed by the end of the summer.
A complete listing of the stores and addresses included in these
transactions is below. Media interviews and store photos or video are
available upon request.
Locations of Rainbow stores included in the
The 10 new CUB stores will be located at:
Chaska – 200 Pioneer Trail
Eagan -- 1276 Town Centre Drive
Lakeville – 17756 Kenwood Trail
Minneapolis (Lagoon) – 1104 Lagoon Avenue
Minneapolis (Quarry) – 1540 New Brighton Road
Oakdale – 7053 10th Street North
Plymouth (6th Avenue) – 10200 6th Avenue North
Roseville (includes stand-alone liquor store) – 1201 Larpenteur Avenue
St. Louis Park (includes stand-alone liquor store) – 5370 16th
St. Paul (Arcade) – 892 Arcade Street
The two new Byerly’s stores will be located at:
Eden Prairie – 970 Prairie Center Drive
Woodbury (includes stand-alone liquor store) – 7050 Valley Creek Plaza
The six Rainbow stores will be located at:
Maplewood – 2501 White Bear Avenue
Minneapolis (Lake Street) – 2919 26th Avenue South
Plymouth (Plymouth Station) – 16705 County Road 24
Richfield – 140 West 66th Street
St. Paul (Midway) – 1566 University Avenue West
West St. Paul – 1660 Robert Street South
About Cub Foods
CUB Foods offers customers the freshest produce, widest selection and
food expertise throughout the store to meet their everyday grocery
needs. In addition to innovative local, ethnic and organic food
sections, CUB Foods stores offer shoppers multiple in-store services
including fresh bakery, full-service deli and meat departments, pharmacy
and banking. CUB Foods, based in Stillwater, Minnesota, was established
in 1968 as one of the nation’s first discount grocery stores. CUB Foods
was purchased in 1980 by SUPERVALU and currently operates 67
corporately-owned and franchised stores in Minnesota and Illinois. For
company news and information, follow us on Twitter at @CubFoods and
Facebook at www.facebook.com/Cub,
or visit our website at Cub.com.
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 3,339
stores composed of 1,819 independent stores serviced primarily by the
Company’s food distribution business, 1,330 Save-A-Lot stores, of which
948 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, relationships with Albertson’s LLC and
New Albertson’s Inc., disruption of information technology systems,
governmental regulation, food and drug safety issues, legal proceedings,
severe weather, natural disasters and adverse climate changes,
disruption to supply chain and distribution network, changes in military
business, adequacy of insurance, volatility in fuel and energy costs,
asset impairment charges, 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