Cerberus buys Shaw's, other Supervalu banners in $3.3 billion deal

[retailisking]

http://supermarketnews.com/retail-amp-financial/supervalu-sell-5-banners-cerberus

[MikeRa]

All SuperValu did was to undo the merger with Albertsons.  All the banners they are selling are the Albertsons banners (Acme/Albertsons/Jewel Osco/Shaw's/Star, as well as Osco Pharmacy and Sav-on Pharmacy)

[retailisking]

All SuperValu did was to undo the merger with Albertsons.  All the banners they are selling are the Albertsons banners (Acme/Albertsons/Jewel Osco/Shaw's/Star, as well as Osco Pharmacy and Sav-on Pharmacy)

And Cerberus paid, by my calculation, about one third what Supervalu paid for the very same banners. Of course, they're only worth about a third of what they were worth in 2006 thanks for market share losses and store closures. The big question is whether Cerberus can make the numbers work even at a "fire sale" price.

[retailisking]

For better or worse, the deal closed today. Shaw's, Star, Acme, Jewel, and Albertsons join the Cerberus family. What do you think will happen?
http://www.twincities.com/business/ci_22839826/supervalu-resurrection-schedule-grocery-sell-off-complete

[JimSawhill]

For better or worse, the deal closed today. Shaw's, Star, Acme, Jewel, and Albertsons join the Cerberus family. What do you think will happen?
http://www.twincities.com/business/ci_22839826/supervalu-resurrection-schedule-grocery-sell-off-complete

I doubt Albertson's will ever be as strong as before, but I would love to see them back in FLorida. (and Shaw's back in Connecticut)

[retailisking]

Albertsons is still in Florida, albeit with only four stores. There are a lot of Food Lion stores on the market, and lots of Sweetbay stores likely to follow, but Publix is so dominant (and Walmart's Neighborhood Market looms as an ever-larger competitor as well) that I'm not sure if Albertsons has a chance to rebuild its presence there and attract sufficient market share to make it worth their while.
http://www.albertsons.com/stores/view-stores-by-state.html?state=FL&pageSource=

As for Shaw's in Connecticut, I think the chances of that are somewhere between slim and none. About the only way that could happen would be for Cerberus to make Big Y an offer they can't refuse. I have a feeling that Shaw's as we have come to know it will cease to exist before too long; it's arguably in the worst shape of the banners Cerberus is taking over apart from maybe Acme.