Thursday, January 10, 2013

Tribune: Supervalu to sell Jewel-Osco, other chains to Cerberus group

Jewel-Osco stores will be sold to a consortium of investors led by Cerberus Capital Management, Jewel's parent Supervalu said Thursday.

The deal, valued at $3.3 billion, also includes the Albertsons, Acme, and Shaw stores.

The announcement ends months of speculation that all or parts of the troubled grocery chain would be sold to New York-based Cerberus, an investment firm. Supervalu acquired Jewel in 2006 as part of a larger, complex acquisition of the Albertsons company.

Supervalu also reported earnings of $16 million, or 8 cents per share, in the third quarter ended on Dec. 1, compared with a year-earlier loss of $750 million, or $3.54 per share.

Excluding an after-tax gain related to a cash settlement from credit card companies and after-tax charges primarily related to store closures, it earned $5 million, or 3 cents per share.

As part of the deal, which includes $100 million in cash and $3.2 billion in debt, the five grocery chains will be acquired by AB Acquisition, an affiliate of Cerberus. Other investors in the deal include Kimco Realty Corp, Klaff Realty, Lubert-Adler Partners and Schottenstein Real Estate Group.
For additional reading Worlee opines about what this means for our local Jewel-Osco store at 87th & Dan Ryan. We have recieved rumblings that the store could be closed in the future. We also have heard that people haven't been particularly happy about the service recieved from the store.

Would you be affected if the 87th/Dan Ryan had been closed? What would it take to keep this store open if there's a restructuring after this acquisition?

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