MINNEAPOLIS -- Supermarket conglomerate SUPERVALU Inc. said last week that it has signed a letter of intent to sell its standalone, single-pricepoint, treasure-hunt Deal$ stores to Dollar Tree Stores Inc. for approximately $30.5 million in cash along with a yet-to-be-determined amount of inventory.
The transaction is expected to close at the end of March, subject to customary closing conditions including regulatory approval.
Over the past four years, Save-A-Lot has successfully integrated general merchandise into our Save-A-Lot [image-nocss] grocery stores, said Bill Moran, president and CEO of Save-A-Lot, one of Minneapolis-based SUPERVALU's holdings. We remain focused on further geographic expansion of the Save-A-Lot combination format.
Deal$, based in St. Louis, currently operates 138 stores in 16 states: Alabama, Arkansas, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Missouri, Ohio, Oklahoma, Pennsylvania, Tennessee, West Virginia and Wisconsin.
Bob Sasser, Chesapeake, Va.-based Dollar Tree Stores Inc.'s president and CEO, said, I am excited about the opportunity that this acquisition provides to expand our presence in the Midwest and Southeast regions. We have existing logistics capacity to service all of these stores efficiently with no additional capital expenditure.
He added, The Deal$ acquisition includes a number of combo' stores that offer an expanded assortment of merchandise including items selling for more than $1. All Deal$ stores will continue to operate under the Deal$ banner, and they will provide an opportunity to leverage the Dollar Tree infrastructure in the development of a multi-priced business without disrupting the single-pricepoint model in Dollar Tree Stores.
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