Home » Supervalu To Acquire Associated Grocers Of Florida
Grocery Industry Home Page Latest News Southeast Wholesaler/Distributor News

Supervalu To Acquire Associated Grocers Of Florida

Supervalu logo

Last updated on March 25th, 2021 at 07:23 pm

Supervalu Inc. and Associated Grocers of Florida Inc. have entered into a definitive merger agreement for Supervalu to acquire Associated Grocers in a transaction valued at approximately $180 million.

This transaction provides Supervalu with the ability to expand its operations into a new part of Florida as well as provides new opportunities to bring Supervalu’s products and services to Associated Grocers’ customer base in South Florida, the Caribbean and other international markets. Additionally, as part of the pending transaction, Supervalu has reached a long-term supply agreement with Associated Grocers’ largest customer that will go into effect upon the closing of the transaction.

Founded in 1945, Associated Grocers is a retailer-owned cooperative that distributes full lines of grocery and general merchandise to independent retailers, primarily in South Florida, the Caribbean, Central and South America and Asia. Associated Grocers’ customer base of conventional, specialty and ethnic stores includes a mix of multi-cultural independent grocers that complements Supervalu’s customer base, the company says. Supervalu expects the combined company will be “well positioned to efficiently serve its broad range of customers and offer an array of value added services, helping Associated Grocers and Supervalu customers compete and thrive in an increasingly demanding grocery environment.” During Associated Grocers’ last fiscal year, which ended on July 29, the company’s revenues were approximately $650 million, estimated by Supervalu under its accounting policies.

“Associated Grocers represents a great opportunity for us to further expand our wholesale business into another important region,” said Mark Gross, Supervalu’s president and CEO. “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.

“Christopher Miller and his talented team have done outstanding work to build and support a dynamic and diverse retailer base. We’re looking forward to welcoming the strengths and talents of the Associated Grocers team to Supervalu and working together so that, once the transaction is complete, we can bring the benefits of our combined scale and expertise to their customers to help them better compete in the evolving grocery industry.”

“I’m very excited about this announcement,” said Associated Grocers’ President Christopher Miller. “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.”

The transaction, which was approved by each company’s board of directors, is expected to close by the end of calendar year 2017, subject to approval by Associated Grocers’ shareholders and other customary closing conditions. Following completion of the merger, Associated Grocers will be a wholly owned subsidiary of Supervalu.

A conference call to review Supervalu’s second quarter results is scheduled for 9:00 a.m. central time Oct. 18. Supervalu intends to discuss this announcement on that call. The call will be webcast live at www.supervaluinvestors.com (click on microphone icon). A replay of the call will be archived at www.supervaluinvestors.com. To access the website replay, go to the “Investors” link and click on “Presentations and Webcasts.”

Supervalu is one of the largest grocery wholesalers and retailers in the U.S., with annual sales of approximately $16 billion. It serves customers across the country through a network of 3,337 stores composed of 3,120 wholesale primary stores operated by customers serviced by Supervalu’s food distribution business and 217 traditional retail grocery stores operated under five retail banners in six geographic regions. Headquartered in Minnesota, Supervalu has approximately 31,000 employees.

Associated Grocers of Florida is a retailer-owned cooperative distributing full lines of groceries and general merchandise under both national and store brands. Founded in 1945, the wholesale distributor serves both independent retailers and regional chains throughout Florida, Central America, South America and Caribbean countries. Headquartered in Pompano Beach, Florida, Associated Grocers operates two distribution centers and has approximately 650 employees. Associated Grocers owns approximately 1.5 million s.f. of real estate.


More Supervalu news:

Supervalu’s Central Grocers Warehouse Buy To Bring West Coast Offerings To Midwest And Beyond

Q&A With Supervalu’s New West Region Wholesale President Leon Bergmann

Supervalu Buys Central Grocers Warehouse For $61M

Featured Photos

Featured Photo PLMA Annual Private Label Trade Show
Donald E. Stephens Convention Center
Chicago, Illinois
Share via
Copy link
Powered by Social Snap