October 18, 2016
Supervalu Inc. announced that it is selling its Save-A-Lot supermarket chain to Onex Corp., a Canadian private-equity firm, for approximately $1.37 billion. Supervalu had planned to spin Save-A-Lot off as a public company, but opted to sell the deep-discount division instead. Supervalu owns Cub Foods and Farm Fresh grocery stores.
The deal is expected to close by the end of January.
According to the Minneapolis-based Supervalu, the sale allows it to focus more on its grocery wholesale-distribution business, as well as its other 200 stores. Save-A-Lot stocks more store brands than national labels, keeping costs down by displaying products in their cardboard shipping boxes.
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