Wednesday, December 5, 2012

Talks heating up between Supervalu and Cerberus

After reports last week that talks between Supervalu and Cerberus Capital Management had cooled, it looks like they have heated up again. A businessweek.com report earlier today says that the struggling national grocery chain is "moving toward a deal" to sell Albertsons and Save-A-Lot to Cerberus.

Previous discussions centered around Cerberus buying the entire company, which includes Acme and others, but reportedly lenders wanted Cerberus to invest about $1.5 billion of the $5 billion +/- purchase price, nearly double their proposed amount.

The new deal being considered has Cerberus controlling Albertsons and Save-A-Lot, Supervalu's two largest chains, and taking an equity stake in the remainder of the company. Supervalu would then attempt to restructure or sell the remaining chains.

Private equity firm KKR & Co. has also expressed interest in Save-A-Lot, according to numerous reports.


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