Breaking News Bar
updated: 3/22/2013 7:54 AM

SuperValu closes sale on Jewel, others

hello
Success - Article sent! close
  • SuperValu Inc. has completed the sale of its Jewel-Osco chain as well as other stores. There are 178 area Jewel-Osco stores, including this one in Wheaton.

      SuperValu Inc. has completed the sale of its Jewel-Osco chain as well as other stores. There are 178 area Jewel-Osco stores, including this one in Wheaton.
    Daily Herald File Photo

 
Daily Herald Staff Report

SuperValu Inc. announced today it has completed the sale of its Itasca-based Jewel-Osco chain, as well as other other grocery stores and pharmacies, to AB Acquisition LLC, an affiliate of a Cerberus Capital Management-led investor consortium for a stock deal valued at $3.3 billion.

The deal also included $100 million in cash and $3.2 billion in debt assumption. The operations of these stores will transfer overnight, the groups said.

Order Reprint Print Article
 
Interested in reusing this article?
Custom reprints are a powerful and strategic way to share your article with customers, employees and prospects.
The YGS Group provides digital and printed reprint services for Daily Herald. Complete the form to the right and a reprint consultant will contact you to discuss how you can reuse this article.
Need more information about reprints? Visit our Reprints Section for more details.

Contact information ( * required )

Success - request sent close

The sale, announced in January, includes 178 area Jewel-Osco stores as well as Albertsons, Acem, Shaw and Star Market stores and pharmacies.

Jewel has about 25,000 workers, said SuperValu spokesman Mike Siemienas.

A management team was expected to determine staffing and other organizational changes at the stores and Jewel's headquarters in Itasca, Siemienas had said.

SuperValu has struggled for years to turn around its business. The broader supermarket industry has been facing growing competition from big-box retailers such as Target, drugstore chains and dollar stores. While bigger chains such as Kroger Co. have adapted by tweaking store formats and improving discount programs and product offerings, SuperValu has scrambled to keep pace.

The closure of the deal also signals that Sam Duncan, the former chairman and CEO of Naperville-based OfficeMax Inc., will become CEO of SuperValu, replacing Wayne Sales, the companies said.

Share this page
Comments ()
Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the X in the upper right corner of the comment box. To find our more, read our FAQ.