MINNEAPOLIS, 2016-Jul-15 — /EPR Retail News/ — SUPERVALU INC. (NYSE:SVU) today announced it has entered into a definitive agreement to acquire 22 Food Lion grocery stores that are being sold in connection with the merger between Ahold and Delhaize. The 22 Food Lion stores are located in northern West Virginia, western Maryland, south central Pennsylvania and northwestern Virginia. The acquired stores will be converted to SUPERVALU’s Shop ‘N Save format and at least initially be operated by SUPERVALU. SUPERVALU is in discussions with certain of its wholesale customers and the Federal Trade Commission (FTC) on ways for its wholesale customers to have an interest in these stores going forward.
SUPERVALU supplies and supports nearly 100 independently-operated Shop ‘N Save stores located primarily in western Pennsylvania and West Virginia. These independently-operated stores are a key component of SUPERVALU’s wholesale business and the network of stores and owners is among the strongest in SUPERVALU’s wholesale business. The 22 acquired stores are expected to benefit from both the scale of the format and similar merchandising and marketing strategies. These stores are not part of SUPERVALU’s corporately-owned Shop ‘n Save retail banner comprised of 44 stores in the St. Louis, Missouri area.
“I’m pleased that SUPERVALU will acquire these stores, which should provide excellent opportunities for our wholesale customers, who were unable to buy them outright,” said SUPERVALU President and CEO Mark Gross. “The stores will operate under our Shop ‘N Save format, which we believe is a great format for us and our wholesale customers. This acquisition is another example of the work we’re doing to grow our business and to deliver creative solutions for our wholesale customers.”
The stores being acquired are conventional supermarkets that are approximately 35,000 square feet in size. As Shop ‘N Save stores, the plan will be to deliver a full-variety meat department, full-service delis and bakeries and an expanded produce department. Additionally, these 22 stores also will receive comprehensive marketing, advertising, and promotional support, including implementation of the Shop ‘N Save loyalty card program, and interactive website and mobile app. The 22 stores currently employ more than 1,200 full and part-time associates and, as part of the acquisition, SUPERVALU anticipates offering employment to substantially all interested employees.
The acquisition of the 22 stores is subject to customary closing conditions, including approval by the FTC, and is expected to be completed in a staggered closing process over the next 105 days.
A complete list of stores and locations follows below.
Food Lion Stores Being Acquired by SUPERVALU
|761 East Wilson Boulevard||Hagerstown||MD||21740|
|22401 Jefferson Boulevard||Smithburg||MD||21783|
|18717 North Pointe Drive||Hagerstown||MD||21742|
|17718 Virginia Avenue||Hagerstown||MD||21740|
|18360 College Road||Hagerstown||MD||21740|
|4170 Philadelphia Avenue||Chambersburg||PA||17202|
|875 Lincoln Way West||Chambersburg||PA||17202|
|500 North Antrim Way||Greencastle||PA||17225|
|11105 Buchanan Trail||Waynesboro||PA||17268|
|707 Fort Collier Road||Winchester||VA||22601|
|2600 Valley Avenue||Winchester||VA||22601|
|249 Sunnyside Plaza Circle||Winchester||VA||22603|
|609 K East Main Street||Purcellville||VA||20132|
|260 Remount Road||Front Royal||VA||22630|
|409 North McNeil Road||Berryville||VA||22611|
|190 Delco Plaza||Winchester||VA||22602|
|380 Fairfax Pike||Stephens City||VA||22655|
|159 Grocery Avenue||Winchester||VA||22602|
|147 Roaring Lion Drive||Hedgesville||WV||25427|
|1140 Winchester Avenue||Martinsburg||WV||25401|
|50 Coast Guard Drive||Kearneysville||WV||25430|
|1317 Old Courthouse Square||Martinsburg||WV||25401|
About SUPERVALU INC.
SUPERVALU INC. is one of the largest grocery wholesalers and retailers in the U.S. with annual sales of approximately $18 billion. SUPERVALU serves customers across the United States through a network of 3,588 stores composed of 1,796 independent stores serviced primarily by the Company’s food distribution business; 1,360 Save-A-Lot stores, of which 897 are operated by licensee owners; and 200 traditional retail grocery stores (store counts as of February 27, 2016). Headquartered in Minnesota, SUPERVALU has approximately 40,000 employees.
For more information about SUPERVALU visit www.supervalu.com.
CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995.
Except for the historical and factual information contained herein, the matters set forth in this news release, particularly those pertaining to SUPERVALU’s expectations, guidance, or future operating results, and other statements identified by words such as “estimates,” “anticipates,” “expects,” “projects,” “plans,” “intends,” “will” and similar expressions are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including uncertainties as to the timing of the acquisition and satisfaction of the closing conditions, including approval by the FTC, SUPERVALU’s ability to integrate the Food Lion stores into the Shop ‘N Save format and ability to reach agreement on ways for its wholesale customers to have an interest in these new stores, and the resulting business impacts of these new stores. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this news release. Unless legally required, SUPERVALU undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Source: SUPERVALU INC.