SUPERVALU Looks to Expand Wholesale Bus. With Acquisition of 22 Food Lion Stores in West Virginia, Maryland, Pennsylvania & V...
July 13 2016 - 9:16PM
Business Wire
Stores to be rebranded under the Company’s Shop
‘N Save format
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
Store Address City ST
Zip 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20160713006601/en/
SUPERVALU INC.For Investors:Steve Bloomquist,
952-828-4144Steve.j.bloomquist@supervalu.comorFor MediaJeff
Swanson, 952-903-1645Jeffrey.s.swanson@supervalu.com
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