Supervalu sells Save-A-Lot

Staff report

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.

“This is an exciting development in the history of Save-A-Lot,” said Eric Claus, Save-A-Lot’s chief executive officer, in a statement. “As an independent company, we can more effectively focus on our growth and operating objectives.

“Onex’s experience and successful investment track record, specifically in corporate carve-outs, positions it as a strong partner for us, and we look forward to working with them,” he said.

Onex is a private equity firm that “acquires and builds high-quality businesses” in partnership with management teams, according to its website.

Save-A-Lot has a network of about 1,370 corporate-owned and licensed stores across 37 states, the Caribbean and Central America.

Supervalu is a supply chain and wholesale distribution company with traditional and hard-discount grocery stores. Save-A-Lot is a hard-discount grocery- store chain.

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.

Mahoning County has six Save-A-Lot locations: 223 Boardman-Canfield Road, Boardman; 653 Gypsy Lane, 2725 South Ave., and 2998 McCartney Road, all in Youngstown; 982 5th St., Struthers; and 1715 S. Raccoon Road, Austintown.

Trumbull County has four Save-A-Lots: 1020 N. Park Ave. and 4329 Mahoning Ave. NW, Warren; 912 Great East Plaza, Niles; and 880 W. Liberty St., Hubbard.

Columbiana County has locations at 787 Fairfield Ave., Columbiana, and 201 E. Lincoln Way, Lisbon.