MINNEAPOLIS — Supervalu Inc. has agreed to be acquired by United Natural Foods Inc. (UNFI) for $32.50 per share in cash, or approximately $1.3 billion in cash plus the assumption of outstanding debt and liabilities. The transaction, which has been approved by the boards of directors of both companies, is valued at about $2.9 billion total and is expected to close in the fourth quarter.
UNFI is a wholesale grocery distributor specializing in natural and organic products. During its third fiscal quarter, which ended in April, UNFI posted a 42% increase in net income to $104 million on a 12% rise in sales to $2.65 billion.
“The combination of UNFI and Supervalu provides a substantial premium and delivers certainty of value to our stockholders, meaningful benefits to our customers, expanded opportunities for our employees and the ability for us and our vendors to efficiently serve a varied customer base,” says Mark Gross, Supervalu’s chief executive officer. “We have been executing an ambitious strategic transformation for over two years. We believe that this transaction is the best and natural next step for our stockholders, customers and employees.”