Supervalu is acquiring Associated Grocers of Florida in a deal valued at $180 million.
Associated Grocers is a retailer-owned cooperative that distributes full lines of grocery and general merchandise to independent retailers primarily in South Florida, the Caribbean, Central and South America, and Asia. The transaction expands Supervalu operations into a new part of Florida, and provides opportunities to bring its products and services to Associated Grocers’ diverse customer base in international markets.
As part of the pending transaction, Supervalu stated that it had reached a long-term supply agreement with Associated Grocers’ largest customer that will go into effect upon the closing of the transaction.
In its last complete fiscal year, which ended on July 29, Associated Grocers’ revenues were approximately $650 million, according to Supervalu.
“Associated Grocers represents a great opportunity for us to further expand our wholesale business into another important region,” said Mark Gross, Supervalu president and CEO. “We believe Supervalu is uniquely positioned to be the supplier of choice across the grocery industry and this acquisition is another example of how we’re delivering on our growth strategy.”
The transaction, which was approved by each company’s board of directors, is currently expected to close by the end of 2017, subject to approval by Associated Grocers’ shareholders and other customary closing conditions. Following completion of the merger, Associated Grocers will be a wholly-owned subsidiary of Supervalu.