SuperValu Exploring Save-A-Lot Business Separation

SuperValu Exploring Save-A-Lot Business Separation

MINNEAPOLIS, MN - SuperValu today has announced its plans to explore the possibility of separating its Save-A-Lot business to allow for a possible spin-off of Save-A-Lot into a stand-alone, publicly traded company.

Sam Duncan, President and CEO, SuperValu

“Over the last two and a half years, Save-A-Lot has repositioned its brand, refocused its efforts on fresh produce and meat, and remerchandised its stores and product offerings to better appeal to a broader group of customers,” said President and CEO Sam Duncan. “Today’s announcement reflects our commitment to continuing to explore ways to maximize value for our shareholders.  

SuperValu's Save-A-Lot Banner

Duncan also added that the company believes a separation of the Save-A-Lot business could allow the banner to better focus on its operations and pursue strategies specific to its business characteristics and growth potentials, for the benefit of our shareholders, customers, licensees and employees.

There has not been a time table released for the separation yet and no assurance that a separation will be completed, but according to a press release, SuperValu has already engaged Barclays and Greenhill to serve as financial advisors, and Wachtell, Lipton, Rosen and Katz as legal advisor, in connection with this possible separation. 

In other SuperValu news, the company also released its Q1 2016 financial results reporting sales increases in all operating segments.

Other highlights from the Q1 report include:

  • Net sales for Q1 2016 reached $5.41 billion 
  • Net earnings from continuing operations hit $63 million
  • Q1 marked the seventh consecutive quarter of positive Save-A-Lot network ID sales
  • Operating earnings of $158 million, $23 million higher than last year's first quarter
  • Adjusted EBITDA of $246 million for Q1 fiscal 2016

Keep watching AndNowUKnow for continued updates on this developing story.