After reports last week that talks between Supervalu and Cerberus Capital Management had cooled, it looks like they have heated up again. A businessweek.com report earlier today says that the struggling national grocery chain is “moving toward a deal” to sell Albertsons and Save-A-Lot to Cerberus.
Previous discussions centered around Cerberus buying the entire company, which includes Acme and others, but reportedly lenders wanted Cerberus to invest about $1.5 billion of the $5 billion +/- purchase price, nearly double their proposed amount.
The new deal being considered has Cerberus controlling Albertsons and Save-A-Lot, Supervalu’s two largest chains, and taking an equity stake in the remainder of the company. Supervalu would then attempt to restructure or sell the remaining chains.
Private equity firm KKR & Co. has also expressed interest in Save-A-Lot, according to numerous reports.
