Supervalu has entered into a definitive agreement to sell 19 of its 36 Shop ‘n Save grocery stores, primarily located in the St. Louis area, to Schnuck Markets.
The transaction is planned to occur with a staggered close process that is currently expected to finish by late October 2018, subject to customary closing conditions. As part of the acquisition, Supervalu and Schnucks will also enter into an agreement for Supervalu to serve as the primary supplier for nine of Schnucks’ existing stores located across northern Illinois, Iowa and Wisconsin.
All Shop ‘n Save stores and fuel centers not included in the deal currently remain open. However, in the event Supervalu cannot identify one or more buyers for these remaining stores in the near term, the company said they will be closed later this year.
“Since announcing plans to pursue the sale of our Shop ‘n Save banner earlier this spring, the team has worked diligently and successfully to put this agreement together,” said Mark Gross, Supervalu’s president and CEO. “This transaction is an important step in the continued transformation of our business. Schnucks is an excellent retailer in the St. Louis area and we’re pleased that these stores will become a part of their operation, including continuing to serve the communities and providing jobs to many of our employees.”