MINNEAPOLIS--(BUSINESS WIRE)--SUPERVALU INC. (NYSE: SVU) today announced it had reached agreement with Haggen, a grocery retailer currently operating 18 stores in Washington and Oregon, to serve as one of its primary grocery suppliers and as its transition services provider to the planned expanded Haggen business. Haggen today announced that it has entered into an agreement to acquire 146 stores as part of the divestment process brought about by the Federal Trade Commission's (FTC) review of the Albertson's LLC and Safeway merger. The acquisition is subject to FTC approval and is expected to close in early 2015.
“Haggen is an impressive grocer with great stores in Washington and Oregon,” said Sam Duncan, SUPERVALU’s president and CEO. “We are thrilled at this opportunity to help an independent grocer significantly expand their business and we look forward to providing Haggen with transition services and working with them as one of their primary grocery suppliers.”
In its role as grocery distributor, SUPERVALU would supply products and provide wholesale services to 64 Haggen stores in Oregon and Washington (comprised of the 46 stores Haggen plans to acquire as well as Haggen’s 18 existing stores). In 2015, Haggen plans to convert these acquired stores to the Haggen Northwest Fresh brand. Additionally, SUPERVALU would provide transition services for all 164 Haggen stores, including IT support and certain back-office support functions.
Founded in 1933, Haggen is headquartered in Bellingham, Washington. Today, it is Washington’s sixth-largest private company with the majority of shares owned by the private equity firm Comvest Partners.
”We’re excited to be growing the Haggen brand and pleased to have both the knowledge and tremendous support of SUPERVALU as we expand our business,” said John Clougher, Haggen CEO, Pacific Northwest.
In connection with these transactions, SUPERVALU also announced today it has agreed to acquire two Albertson's grocery stores located in Everett and Woodinville, Washington. SUPERVALU’s agreement to acquire these two stores is also still subject to FTC approval. The stores average approximately 40,000 square feet in size. Upon completion of the transaction, which is anticipated in early 2015, SUPERVALU expects to rename the stores under the County Market brand. SUPERVALU also announced it plans to offer employment to all associates currently working in these two stores.
About SUPERVALU INC.
SUPERVALU INC. is one of the largest grocery wholesalers and retailers in the U.S. with annual sales of approximately $17 billion. SUPERVALU serves customers across the United States through a network of 3,357 stores composed of 1,827 independent stores serviced primarily by the Company’s food distribution business; 1,334 Save-A-Lot stores, of which 915 are operated by licensee owners; and 196 traditional retail grocery stores (store counts as of November 1, 2014). Headquartered in Minnesota, SUPERVALU has approximately 35,000 employees. For more information about SUPERVALU visit www.supervalu.com. Information on our website is not incorporated into and does not form a part of this press release.
CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995.
Except for the historical and factual information contained herein, the matters set forth in this news release, particularly those pertaining to SUPERVALU’s expectations, guidance, or future operating results, and other statements identified by words such as "estimates," "expects," "projects," "plans," and similar expressions are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the failure to receive approval from the Federal Trade Commission, the failure of any party to meet its closing conditions under the applicable purchase agreement, inability to successfully and efficiently service Haggen’s acquired stores, competition, ability to execute initiatives, substantial indebtedness, impact of economic conditions, labor relations issues, escalating costs of providing employee benefits, relationships with Albertson’s LLC and New Albertson’s Inc., intrusions to and disruptions of information technology systems, governmental regulation, food and drug safety issues, legal proceedings, severe weather, natural disasters and adverse climate changes, disruption to supply chain and distribution network, changes in military business, adequacy of insurance, volatility in fuel and energy costs, asset impairment charges, fluctuations in our common stock price and other risk factors relating to our business or industry as detailed from time to time in SUPERVALU’s reports filed with the SEC. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this news release. Unless legally required, SUPERVALU undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
