Supervalu Inc. (NYSE: SVU) has agreed to purchase Associated Grocers of Florida for approximately $180 million. The deal for Associated Grocers will introduce Supervalu’s operations to a new part of Florida.
Founded in 1945, Associated Grocers is a distributor of grocery and general consumer products to independent retailers and grocery stores. The Pompano Beach, Florida-based target serves its portfolio of customers that are primarily located in South Florida, the Caribbean, Asia, and Central and South America. Associated Grocers operates from two distribution centers employing nearly 650 workers.
Supervalu, based in Minnesota, is one of the largest grocery retail suppliers in the U.S. The current deal follows Supervalu’s acquisition of Unified Grocers with its 24 distribution centers supplying more than 3,000 grocery stores across 46 states. Supervalu’s recent business moves comes amid heavy price competition in the U.S., reinforcing a broader shake-up and consolidation in the grocery store sector. In October 2016, Supervalu off-loaded its Save-A-Lot grocery chain business for nearly $1.37 billion in cash.
Other deals in the grocery sector include: Amazon.com Inc.’s (Nasdaq: AMZN) acquisition of Whole Foods Market Inc. (Nasdaq: WFM) for $13.7 billion deal; Haggen Inc.’s purchase of 146 grocery stores on the west coast of the U.S. for an undisclosed amount; Apollo Global Management LLC's (NYSE: APO) deal to buy grocer The Fresh Market Inc. (Nasdaq: TFM) for nearly $1.4 billion in cash; and Kroger Co.'s (NYSE: KR) acquisition of Harris Teeter Supermarkets Inc. for $2.5 billion in cash.
Faegre Baker Daniels LLP and Cleary Gottlieb Steen & Hamilton LLP are acting as legal counsel to Supervalu. RBC Capital Markets LLC is serving as financial adviser to Associated Grocers of Florida, while Akerman LLP is acting legal counsel.