Save-A-Lot, a discount grocer owned by private equity firm Onex Corp., is exploring a sale of all or part of itself, as it deals with increased competition and debt load, according to a recent Reuters report.
The company has hired investment bank P.J. Solomon to explore a potential deal, said the sources in the report. The move comes as German discounters Lidl and Aldi are putting pressure on Save-A-Lot by expanding across the country, and big box rivals such as Walmart cut prices.
Missouri-based Save-A-Lot has about 1,230 stores and is the second largest hard discount grocer in the U.S. after Aldi, according to credit ratings agency Moody’s Investors Service.
Onex bought Save-A-Lot from U.S. supermarket operator Supervalu in a $1.4 billion deal in 2016.