Supervalue sells its Save-A-lot business

YOUNGSTOWN

Supervalu has entered into a definitive agreement to sell its Save-A-Lot business for $1.365 billion in cash to Onex Corp. of Canada.

In connection with the sale, Supervalu and Save-A-Lot will enter into a five-year professional services agreement. The sale of Save-A-Lot is expected to be completed by Jan. 31, 2017.

Supervalu expects to use the net proceeds from the sale to prepay at least $750 million against its outstanding term loan balance. The company intends to use the remaining net sale proceeds to further reduce debt and improve its capital structure, as well as to fund corporate and growth initiatives.

Youngstown has four Save-A-Lot locations: 223 Boardman-Canfield Road, 653 Gypsy Lane, 2725 South Ave. and 2998 McCartney Road.

Save-A-Lot also has a location in Struthers at 982 5th St. Austintown has a location at 1715 S. Raccoon Road.

In Trumbull County, Warren has two locations at 1020 North Park Ave. and 4329 Mahoning Ave. NW.

Niles has a location at 912 Great East Plaza and Hubbard has a location at 880 W. Liberty St.

Supervalue sells its Save-A-lot business