NEW YORK CITY-A consortium of investment entities led by Cerburus Capital Management is planning to buy five chains from SuperValu. The purchase price is $3.3 billion.
The sale will shift ownership for Albertsons, Acme, Jewel-Osco, Shaw’s and Star Market stores and related Osco and Sav-on in-store pharmacies, according to a company statement. The consortium is comprised of Kimco Realty Corp., Klaff Realty LP, Lubert-Adler Partners and Schottenstein Real Estate Group.
A management shift is expect to come on the heels of the closing. Sam Duncan will become president and CEO of SuperValu, replacing Wayne Sales, who is also chairman. In addition, five current SuperValu directors will resign.
The purchase is being funded via a $90-million asset-based revolving credit facility led by Wells Fargo and a $1.5-billion term loan secured by a portion of the company’s real estate and an equity pledge of Moran Foods LLC. That is being led by Goldman Sachs Bank USA, Credit Suisse, Morgan Stanley, Bank of America Merrill Lynch and Barclays.
The proceeds of these financings will be used to replace the existing $1.65 billion asset-based revolving credit facility, the existing $846 million term loan, and to call and refi $490 million of 7.5% bonds scheduled to mature in November 2014.