Sunday, March 9, 2014
From staff and news services
Supervalu Inc. announced Thursday that it has reached a deal to sell five of its biggest grocery chains – including Shaw’s — for $100 million in cash plus more than $3 billion in debt.
Shaw's grocery store at Northgate Plaza in Portland.
John Ewing / Staff Photographer
The sale to AB Acquisition, an investor group led by Cerberus Capital Management, will include 877 stores.
Shaw’s has 22 locations in Maine.
The other chains are Albertsons, Acme, Jewel-Osco and Star Market.
The group will acquire the stores for $100 million in cash, and the new company will assume $3.2 billion in debt.
After the sale, Supervalu will consist of a food wholesaler, Save-A-Lot, and regional chains Cub, Farm Fresh, Shoppers, Shop ’n Save and Hornbacher’s.
Supervalu said Sam Duncan, a grocery industry veteran, will replace CEO and Chairman Wayne Sales after the sale.
Shaw’s Supermarkets Inc. announced in November that it would cut 700 jobs, 4 percent of its work force, across New England, two weeks after SuperValu posted a second-quarter loss.
Shaw’s is one of the oldest continuously operating supermarket chains in the country, dating back to 1860, when George C. Shaw opened his first store in Portland. Shaw’s sold its Connecticut stores in 2010.