Supervalu Inc. (NYSE: SVU) agreed to sell its Save-A-Lot grocery business to Canada’s Onex Corp. (TSE: OCX) for $1.37 billion in cash, offloading a discount chain at a time of heavy price competition in the U.S.

As part of the deal, Supervalu will provide services such as payroll and merchandising technology to Save-A-Lot for five years, the Minneapolis-based company said in a statement. The transaction is slated to be completed by Jan. 31.

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