SuperValu informed that it is selling its division, Save-A-Lot supermarket chain for $1.37 billion to Canadian private equity firm Onex Corp. The deal is expected to be done by the end of January. The SuperValu, based in Eden prarie, Minnesota, distributes grocery items to supermarkets and provides other similar services to them. There are approximately 1,300 Save-a-Lot grocerystores. The company also owns the Shop ‘N Save and Cub Foods chains.
The company first announced plans to sell Save-A-Lot last year to focus on growing its distribution business. SuperValu told that signed a five year deal with Save-A-Lot to provide cloud technology, as well as payroll, merchandising technology and financial services. The organisation told that it will use some money from the sale to pay the debt. Shares of SuperValu Inc. rose 3.8% to $5.20 before the stock market opened on Monday. Its share were down by 30% in the last 12 months.