Onex Heads Effort to Buy Out SuperValu's Save-A-Lot
EDEN PRAIRIE, MN - After two years of speculation on whether or not SuperValu will spin-off or sell its Save-A-Lot business, it seems that the ‘will they?’ or ‘won’t they?’ is finally coming to a close. Private equity firm Onex Corp has reportedly made the highest offer in exchange for an acquisition of the chain, which may be closed as soon as within the next two weeks.
Sources familiar with the matter informed Reuters about the potential acquisition in the works, and while there is no information yet on price, prior estimates weighed the company in at as much as $1.8 billion. The company’s market cap is currently $1.4 billion.
Upon the news that Onex may purchase the retailer, share prices rose significantly, reaching nearly $5 per share. This is up from its price of $4.56 on Wednesday, September 28.
We first reported on SuperValu’s intention to split off its Save-A-Lot business back in July of 2015, with President and CEO at the time, Sam Duncan, explaining that the move could allow the banner to better focus on its operations and pursue strategies specific to its business characteristics and growth potentials. Later, in November of 2015, we reported that SuperValu had changed its plans, beginning to consider the possibility of an outright sale of the chain.
Since discussions on separating Save-A-Lot arose, SuperValu has made many changes in its highest leadership positions. Eric Claus, the former CEO of now-bankrupt grocer A&P, became CEO of Save-a-Lot, and Mark Gross, the former Co-President of C&S Wholesale, joining as CEO of the entire SuperValu chain.
Will we see new owners at Save-A-Lot before the month is out? AndNowUKnow will keep scanning our sources for more information as it is revealed.