Supervalu to Buy Unified Grocers in $375M Deal
Supervalu Inc. has agreed to pay $375 million to acquire Unified Grocers, a Los Angeles-area food distributor. The deal intensifies Supervalu’s focus on its wholesale business. Supervalu said it will pay $114 million in cash for all outstanding shares of Unified, a cooperative owned by member grocery firms, and assume about $261 million in debt. The deal is expected to close this summer.
Total Retail’s Take: Supervalu began to shift its focus into distribution and away from operating grocery stores in 2013 when it sold Albertsons and, more recently, when it sold Save-A-Lot. The purchase of Unified represents a push to the West Coast for Supervalu. With this acquisition, Supervalu will now operate 24 distribution centers, serving 3,000 grocery stores in 46 states. Unified's $3.8 billion in annual revenue adds to Supervalu's existing wholesale business, which generated about $8 billion in revenue last year.