MINNEAPOLIS -- SUPERVALU said that it has reached an agreement with Associated Food Stores Inc. for the sale of the majority of its Albertsons grocery stores located in Utah. The sale will include 36 Albertsons stores in Utah and their respective pharmacies, as well as six fuel centers, with the exception of three St. George-area stores that will remain Albertsons and continue to be operated by SUPERVALU.
SUPERVALU has a total of 130 fuel centers at its supermarkets nationwide.
Salt Lake City, Utah-based Associated Foods, services more than 500 independent grocery [image-nocss] stores throughout seven Intermountain West states. Banners in Utah such as Harmon's, Ream's, Winegar's and Kent's are members of the retailer-owned cooperative. The company also owns 22 stores operating under the Macey's, Dan's, Lin's and Dick's Market banners.
Associated Foods spokesperson Rand Mickelson told CSP Daily News that the company is still evaluating its plans for the six fuel centers. The company runs a handful of gas stations at Macey's locations in Utah, he added.
In connection with this transaction, SUPERVALU is also seeking a buyer for its two Albertsons stores in Orem, Utah and two Albertsons stores in West Jordan, Utah, and will continue to operate those stores while a buyer is identified.
Associated Food Stores intends to rename the 36 purchased stores and expects to interview and offer employment to most Albertsons associates. Shoppers will begin noticing improvements in phases over the next few months, Associated Foods said. Dick King, senior vice president, Associated Food Stores, will assume the additional responsibilities of president of the new entity.
SUPERVALU's Salt Lake City distribution center will remain part of SUPERVALU and will remain open to serve Albertsons stores in Idaho, Wyoming and Montana.
The transaction, which is subject to regulatory approval, is expected to close this fall. SUPERVALU will realize approximately $150 million in after-tax net proceeds from the sale.
"While this was a difficult decision due to the impact on our associates and the Utah community, the sale of these stores will allow the company to focus on our greatest growth opportunities while at the same time monetize non-strategic assets for debt paydown," said Craig Herkert, SUPERVALU CEO. "Albertsons has a long history of serving the Utah marketplace, and the decision to sell these stores was made only after careful analysis and deliberation."
Founded in 1939, Albertsons was acquired by SUPERVALU in 2006. Albertsons employs more than 3,000 associates throughout the state of Utah.
SUPERVALU INC. is one of the largest companies in the U.S. grocery channel with estimated annual sales of $42 billion. It has approximately 2,500 retail grocery locations, including nearly 900 in-store pharmacies. Through the company's nationwide supply chain network, SUPERVALU provides distribution and related logistics support services to more than 2,500 independent retailers across the country.
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