United Natural Foods wraps up Supervalu acquisition

United Natural Foods Inc. (UNFI) today finalized its $2.9 billion deal to buy fellow food wholesaler Supervalu Inc.

With the transaction’s closing, trading of Supervalu’s common stock will cease as of the market open on Oct. 22 and be delisted from the New York Stock Exchange. Supervalu shareholders approved the acquisition agreement on Friday.

Steve Spinner (photo at left), chairman and chief executive officer of UNFI, will lead the merged company. Overseeing Supervalu as CEO will be Sean Griffin. Formerly chief operating officer at UNFI, Griffin was named to the Supervalu post last month and takes over from Mark Gross, who stepped down as the Minneapolis-based company’s president and CEO with the completion of the acquisition.

Supervalu’s Mike Stigers, executive vice president of wholesale, and Anne Dament, executive vice president of retail, marketing and private brands, will report to Griffin.

United Natural Foods Inc. (UNFI) today finalized its $2.9 billion deal to buy fellow food wholesaler Supervalu Inc.

With the transaction’s closing, trading of Supervalu’s common stock will cease as of the market open on Oct. 22 and be delisted from the New York Stock Exchange. Supervalu shareholders approved the acquisition agreement on Friday.

Steve Spinner (photo at left), chairman and chief executive officer of UNFI, will lead the merged company. Overseeing Supervalu as CEO will be Sean Griffin. Formerly chief operating officer at UNFI, Griffin was named to the Supervalu post last month and takes over from Mark Gross, who stepped down as the Minneapolis-based company’s president and CEO with the completion of the acquisition.

Supervalu’s Mike Stigers, executive vice president of wholesale, and Anne Dament, executive vice president of retail, marketing and private brands, will report to Griffin.

Continuing to report to Spinner at Providence, R.I.-based UNFI are President Chris Testa, Chief Supply Chain Officer Paul Green and Chief Financial Officer Mike Zechmeister.

For natural/organic distributor UNFI, the purchase of Supervalu expands its geographic reach and customer base, including across more retail channels. The combined company distributes more than 110,000 products to over 40,000 customer locations — including natural product superstores, independent retailers, supermarket chains, e-commerce retailers and foodservice providers in the United States and Canada.

UNFI has said it expects more cross-selling opportunities with the addition of high-growth perimeter categories such as meat and produce to its natural and organic products. The company estimates run-rate cost synergies of more than $175 million by the third year after the acquisition.

Leave a Reply

Your email address will not be published. Required fields are marked *