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SuperValu to acquire Associated Grocers of Florida

RBR Staff Writer Published 20 October 2017

Minnesota-based retailing company SuperValu has agreed to acquire Associated Grocers of Florida for an amount of $180m.

The acquisition will provide access to new regions in the state of Florida for SuperValu. It is also expected to result in bringing SuperValu's products and services to the customers of Associated Grocers in the regions of Southern Florida, the Caribbean and other international markets.

As part of the transaction, SuperValu has signed a long-term supply agreement with Associated Grocers’ largest customer. This agreement will come into effect as soon as the transaction is completed.

Associated Grocers is a retailer-owned cooperative that supplies full lines of grocery and general merchandise to independent retailers in South Florida, the Caribbean, Central and South America and Asia. It earned a revenue of $650m for the financial year ending 29 July 2017.

It has a wide range of customer base including conventional, specialty and ethnic stores with a good mix of multi-cultural independent grocers that are claimed to complement SuperValu's customer base.

SuperValu's president and CEO Mark Gross said: “Associated Grocers represents a great opportunity for us to further expand our wholesale business into another important region.

"We believe SuperValu is uniquely positioned to be the supplier of choice across the grocery industry and this acquisition is another example of how we're delivering on our growth strategy."

The transaction has been approved by the boards of directors of both companies and is expected to be closed by the end of this year, subject to approval from Associated Grocers’ shareholders and customary closing conditions.

Associated Grocers' president Christopher Miller said: "I'm very excited about this announcement. Being a part of SuperValu will provide us with access to resources, products, services and overall capabilities that are essential to helping us continue to provide top-notch support to our customers.

"SuperValu and Associated Grocers share a common dedication and commitment to the independent retailer and together we'll be in a great position to provide opportunities, innovation and increased value to our customers, both domestically and in foreign markets."

Image: SuperValu to acquire Associated Grocers for $180m. Photo: Courtesy of Ardfern/Wikipedia.org.