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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

Watercooler

GTCR, Hormel, the Riverside Co-CEOs and Others Win M&A Mid-Market Awards
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

Dealmakers

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Traditional Hollywood studios such as Disney and Warner Bros. are seeking next-generation YouTube content providers

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Activist Investors Dig Into Mid Market
Spurred on by the high-profile success of Carl Icahn and others, a growing crop of firms is looking further downstream

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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