|View printer-friendly version|
|SUPERVALU Signs Letter of Intent With C&S Wholesale Grocers for Select Assets Previously Owned by Fleming Companies|
MINNEAPOLIS, Aug. 10 /PRNewswire-FirstCall/ -- SUPERVALU INC. (NYSE: SVU) today announced that it has signed a letter of intent with C&S Wholesale Grocers, Inc., for certain assets that C&S may purchase from Fleming Companies.
Final approval of C&S's purchase of the Fleming assets is anticipated to occur in the U. S. Bankruptcy Court within the next few weeks, and would enable SUPERVALU's purchase of the Fleming operations located in La Crosse and Milwaukee, Wisc., and Massillon, Ohio, and the assets associated with those locations. SUPERVALU also would assume ownership of the retail trade names Festival Foods and Sentry Foods, as well as licensing rights to the Jubilee Foods name in certain markets. Under the agreement, SUPERVALU would also acquire ownership of the Crestwood Bakery trademark and its related assets. The transaction is subject to regulatory approval.
"We look forward to completing this unique opportunity to leverage our distribution network in the Midwest," said Jeff Noddle, SUPERVALU's chairman and CEO. "We are excited to form new and valuable partnerships with retailers in this area, and remain dedicated to supporting independent grocers and their important position in the marketplace."
SUPERVALU is one of the largest companies in the United States grocery channel. With annual revenues approaching $20 billion, SUPERVALU holds leading market share positions with its 1,436 retail grocery locations, including licensed Save-A-Lot locations. Through its Save-A-Lot format, the company holds the number one market position in the extreme value grocery retail sector. In addition, SUPERVALU's highly efficient logistics operation provides the nearly $700 billion grocery channel with state of the art logistics support services. SUPERVALU currently has approximately 57,400 employees.
SUPERVALU's retail store network consists of 1,436 stores in 40 states, including 1,170 Save-A-Lot extreme value stores - 794 licensed stores and 376 corporate owned stores, including 58 combination stores and 97 Deals stores; 266 regional banners including Cub Foods, Shop 'n Save, Shoppers Food Warehouse, bigg's, Farm Fresh, Scott's Foods and Hornbacher's stores. SUPERVALU serves as primary supplier to approximately 2,500 stores, 29 Cub Foods franchised locations, and SUPERVALU's own regional banner store network of 266 stores, while serving as secondary supplier to approximately 1,400 stores.
The statements contained in this news release that are not historical fact are forward-looking statements and are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Certain important factors could cause results to differ materially from those anticipated by such forward-looking statements, including the impact of competition, the nature and extent of the consolidation of the retail food and food distribution industries, the ability to attract and retain customers for the company's food distribution operations and to control food distribution costs, the ability of the company to grow through acquisition and assimilate the acquired entities, the execution of restructuring activities, potential work disruptions from labor disputes or national emergencies, the availability of favorable credit and trade terms, food price changes, general economic or political conditions that affect consumer buying habits generally or war-time activities, threats or general acts of terror directed at the food industry that affects consumer behavior, other risk factors inherent in the food distribution and retail businesses and other factors discussed from time to time in reports filed by the company with the Securities and Exchange Commission.
SOURCE SUPERVALU INC.