Supervalu Weighs Reorganization Plan

Supervalu is weighing a proposal to reorganize the company’s corporate structure to further facilitate its strategic transformation plan. The proposal would result in a reorganization of the company’s corporate structure into a holding company structure.

The holding company structure is being proposed to organize and further segregate Supervalu’s wholesale and retail operations in an operationally efficient and strategic manner; facilitate the company’s strategic transformation plan to sell certain retail assets to third parties; better segregate the liabilities of the company into their respective business segments; and increase its strategic, business and financial flexibility.

The company said the plan would also enable it to achieve its strategic transformation plan in a tax efficient manner, which could generate approximately $300 million of cash tax benefits for the company over the next 15 years.

“We have been executing a strategic transformation of our business over the last two years to become the wholesale supplier of choice for grocery retailers across the U.S., while also executing initiatives to deliver long-term stockholder value,” said Mark Gross, Supervalu’s president and CEO. “The proposed holding company structure is another significant and important undertaking by our team that would support and advance our transformation by further separating our wholesale and retail operations in a tax efficient manner.”

Supervalu stockholders are being asked to consider and vote upon the holding company proposal at the company’s 2018 annual meeting of stockholders.