April 10, 2017 / 9:45 PM / 3 months ago

BRIEF-Supervalu to acquire Unified Grocers

2 Min Read

April 10 (Reuters) - Supervalu Inc:

* Supervalu to acquire Unified Grocers to create one of the nation's leading grocery wholesale companies

* Supervalu - deal for $375 million

* Supervalu - combined business designed to deliver value to co' stockholders with at least $60 million in run rate cost synergies

* Supervalu - co to use cash on hand and borrowings under its credit facilities to purchase unified's equity and repay Unified's outstanding net debt

* Supervalu - transaction value comprised of about $114 million in cash for 100 percent of outstanding stock of Unified Grocers

* Supervalu - transaction was unanimously approved by each company's board of directors, is currently expected to close in mid-to-late summer 2017

* Supervalu - transaction value also comprised of assumption and pay-off of unified grocers' net debt at closing

* Supervalu - $60 million in run rate cost synergies expected to be realized by end of third year of operations

* Supervalu - following completion of merger, unified grocers will be a wholly-owned subsidiary of supervalu

* Supervalu - transaction expected to be accretive to earnings per share in first full fiscal year following closing which begins on February 25, 2018

* Supervalu-To achieve synergies,co expects to incur transition,integration costs of up to $60 million within first 2 years following transaction completion Source text for Eikon: Further company coverage:

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