Cerberus close to buying Albertson, Save-A-Lot, not Jewel: report
SUN-TIMES STAFF December 5, 2012 2:02PM
Updated: January 7, 2013 7:17AM
Shares of Supervalu, owner of Jewel-Osco, jumped 13.7 percent, or 35 cents, to $2.90 Wednesday following a report that private-equity firm Capital Management LP is close to buying two of the company’s grocery chains.
Cerberus is close to buying the Albertson and Save-A-Lot stores from Supervalu, rather than the Jewel-Osco chain, Bloomberg reported. Cerberus changed its focus to the two groups after talks to buy the entire company stalled, Bloomberg reported.
Supervalu, based in Eden Prarie, Minn., announced in July that it was looking at its strategic options, including putting itself up for sale. The company has also suspended its dividend, closed stores, cut staff and replaced its CEO in the past year.
Supervalu has struggled for a number of years to turn around its business. It was an industry laggard prior to the recession and was getting a revamp ready when the economy crumbled. It has been unable to keep up with the intense competition of other grocers, big box store and discount retailers.