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The first installment of our new predictive index shows that dealmakers expect overall M&A to increase, with health care outperforming the overall market READ MORE 

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ACG New York Women of Leadership - Entrepreneur Series
Barbara Bradley Baekgaard, founder of Vera Bradley (Nasdaq: VRA), is the latest in a series of entrepreneurs highlighted at ACG New York Women of Leadership events. Photo credit: Robert Blumenfeld

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Amid a slow and challenging year for dealmaking, the winners of Mergers & Acquisitions’ 7th Annual M&A Mid-Market Awards outpaced the competition to grow, innovate and lead the middle market

Roundtable

Financial Services Companies Heat Up M&A Market
Speakers from Flexpoint Ford, Genstar Capital, Baird Capital, Madison Capital Funding and Katten Muchin Rosenman discuss the various factors playing a role in M&A activity within the financial services space

Expert's Corner

Pursuing Pharma Manufacturing
The fragmented pharmaceutical manufacturing industry provides plenty of opportunities for private equity investors, says JLL Partners founder Paul Levy

Today's Transactions:
Cerberus-Led Group Gobbles Up Shaws and Other Supervalu Supermarkets for $3.3B

The investor group will also purchase the Albertsons, Acme, Jewel-Osco and Star Market chains

Cerberus Capital Management LP is leading an investor group that is set to purchase five supermarket chains from Supervalu Inc. (NYSE: SVU) in a deal valued at $3.3 billion.

The group, facilitating the transaction as AB Acquisition LLC, also includes Kimco Realty Corp. (NYSE: KIM), Klaff Realty LP, Lubert-Adler Partners and Schottenstein Real Estate Group. The investors will pay $100 million in cash and assume $3.2 billion in debt.

The group will buy the Albertsons, Acme, Jewel-Osco, Shaw’s and Star Market stores, for a total of 877 stores.

Supervalu, headquartered in Eden Prairie, Minn., also owns the Cub, Farm Fresh, Hornbacher’s, Lucky, Save-A-Lot, Shop ‘N Save and Shoppers grocery chains.

In connection with the deal, Supervalu has negotiated a new $900 million asset-based revolving credit facility, led by Wells Fargo, and a $1.5 billion term loan, secured by a portion of the company’s real estate and an equity pledge by Moran Foods LLC. Moran Foods is the parent of Save-A-Lot. The financing will be used to replace Supervalu’s existing $1.65 billion asset-based revolving credit facility, $846 million term loan and to refinance $490 million in bonds scheduled to mature in Nov. 2014.

Cerberus is a New York based private equity firm with more than $20 billion in capital under management.

Goldman Sachs & Co. and Greenhill & Co. LLC served as Supervalu’s financial advisers, while Wachtell Lipton Rosen & Katz served as the company’s legal counsel. Lazard and Barclays advised Cerberus, while Schulte Roth and Zabel LLP acted as Cerberus’ legal counsel.

For more coverage on M&A in the supermarket space, see “Grocers Grow.” 

 

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