Minneapolis — Bringing together two complementary organizations with roughly $16 billion in combined 2016 sales, Supervalu, Inc. has begun the process of acquiring and merging with United Grocers, Inc. in a deal valued at approximately $375 million, the purchasing firm reports.
The combined companies would operate 24 distribution centers supplying some 3,000 stores in 46 states, Supervalu reports.
The deal, which was approved by the acquiring company’s board, is expected to close this summer and is subject to authorization from United Grocer shareholders and other customary conditions. Upon closing, United Grocer will operate as a wholly owned subsidiary of Supervalu.
Mark Gross, Supervalu president and CEO, says: “By acquiring the United business, including gaining a wealth of expertise and talent, we will become a stronger and more efficient organization. The transaction will enhance our ability to help our customers better compete in the evolving grocery industry.”