Supervalu on Friday said it had closed on the purchase of Unified Grocers Inc., providing the Minneapolis wholesaler with distribution to independent grocers on the West Coast.
Supervalu announced the $390 million deal in April, using proceeds generated by the 2016 sales of its Save-A-Lot discount business. On Friday the company said the purchase comprised of $114 million in cash to Unified Grocers’ shareholders for 100% of its stock; and the assumption and pay-off of $276 million in Unified debts.
“The completion of this transaction is a significant step forward for SUPERVALU and the growth of our wholesale business,” Mark Gross, president and CEO of Supervalu, said in a statement. “Our teams are fully engaged in the important work of integrating these two great organizations with a continued focus on delivering for our customers and stockholders. We’re excited about working with the many talented associates to supply and serve our expanded and highly diverse customer base.”
Unified, a cooperative, had 345 members at the end of fiscal 2016 and sales of around $3.8 billion.