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Save-A-Lot May Become Standalone Company As Supervalu Eyes Spinoff

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Last updated on June 14th, 2024 at 10:11 am

Supervalu says it is exploring a separation of its Save-A-Lot business and, as part of that process, has begun preparations to allow for a possible spinoff of Save-A-Lot into a standalone, publicly traded company.

“Save-A-Lot is a leading national hard-discount retailer with over 1,300 total stores, comprised of approximately 430 corporate stores and approximately 900 stores operated by licensee owners, and we believe Save-A-Lot has significant growth potential. Over the last two and a half years, Save-A-Lot has repositioned its brand, refocused its efforts on fresh produce and meat, and remerchandised its stores and product offerings to better appeal to a broader group of customers,” said Supervalu President and CEO Sam Duncan. “Today’s announcement reflects our commitment to continuing to explore ways to maximize value for our shareholders. We believe a separation of our Save-A-Lot business could allow Save-A-Lot, our Independent Business and our Retail food banners to better focus on their respective operations, and pursue strategies specific to their business characteristics and growth potentials, for the benefit of our shareholders, customers, licensees and employees.”

No specific timetable for a separation has been set, and Supervalu says there can be no assurance that a separation of Save-A-Lot will be completed or that any other change in the company’s overall structure or business model will occur.

Minneapolis-based Supervalu says it has engaged Barclays and Greenhill to serve as financial advisors, and Wachtell, Lipton, Rosen and Katz as legal advisor in connection with this possible separation.

The news comes as Supervalu on Tuesday reported its first quarter 2016 results.

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The Shelby Report delivers complete grocery news and supermarket insights nationwide through the distribution of five monthly regional print and digital editions. Serving the retail food trade since 1967, The Shelby Report is “Region Wise. Nationwide.”

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