Supervalu Inc. (NYSE: SVU) has agreed to acquire West Coast grocery store distributor Unified Grocers Inc. in an acquisition valued at $375 million. The deal fuses two complementary grocery wholesalers with combined sales of approximately $16 billion in 2016, amid heavy price competition in the U.S.
Unified Grocers is a retailer-owned wholesale grocery distributor founded in 1922. The target, headquartered in Commerce, California, supplies independent retailers throughout the Western U.S. Unified Grocers, through six distribution centers, offers resources and grocery materials for its customers to compete in the supermarket industry. Following completion of the merger, Unified Grocers will be a wholly-owned subsidiary of the buyer.