The combined companies will operate 24 distribution centers supplying customers in 46 states and serve a customer base of over 3,000 stores.
In a transaction valued at $375 million, Supervalu has completed its acquisition of Unified Grocers, Inc. In addition to the 100% cash transaction of $114 million, Supervalu has agreed to pay-off Unified Grocers’ outstanding net debt of approximately $261 million.
Supervalu is one of the largest grocery wholesalers and retailers in the United States with annual sales of approximately $13 billion. Unified Grocers, a retailer-owned wholesale grocery distributor that supplies independent retailers throughout the western U.S., reported annual sales of about $3.8 billion. Supervalu will maintain Unified Grocers’ headquarters in Commerce along with management and employees.
The combined companies will operate 24 distribution centers that supply customers in 46 states and serve a customer base of more than 3,000 stores. The merger is expected to open new avenues for growth such as the expansion of Unified Grocers’ Market Centre division which provides specialty and ethnic products to independent retailers.
“We’re thrilled at the opportunity to bring together these two great organizations,” said Mark Gross, SUPERVALU’s President and Chief Executive Officer in a press release. “By acquiring the Unified business, including gaining a wealth of expertise and talent, we will become a stronger and more efficient organization. The transaction will enhance our ability to help our customers better compete in the evolving grocery industry. We’re also excited to serve Unified’s dynamic retailer base. Unified’s Members and customers operate some of the country’s most exciting and progressive Hispanic and multiple other ethnic formats, specialty, gourmet, natural/organic, price impact and traditional stores. They complement our existing customer base and we look forward to facilitating collaboration and innovation across such an impressive collection of creative merchants.”
Gross continued, “We appreciate the experience, intelligence and dedication of the Unified team, and look forward to welcoming Unified associates to SUPERVALU and supporting them as we continue the important work of contributing to the growth and success of our customer network and helping to deliver value to our stockholders. We will make a great team together.”
“We believe this transaction will benefit the Members and customers of Unified Grocers as they look for new and innovative ways to serve the communities in which they operate,” said Unified Grocers’ President and CEO, Bob Ling. “SUPERVALU and Unified share a common vision of providing best-in-class services and products to the independent grocer. The cultural fit between SUPERVALU and Unified well positions the combined company to pursue a shared dedication and commitment to growth and innovation, providing increased value to customers.”
