The 135-year-old retail and food logistics company has a network of more than 2,400 stores across the US. However, the chain’s market value has slumped by more than three-quarters since the end of 2010 after competition from discount stores and increased running costs led to losses of more than $2.5bn over the last two financial years.
According to Reuters, Cerberus is no longer seeking to acquire all of the company as it failed to agree financing terms. As it stands, the firm will invest close to £500m in Supervalu. At Friday’s closing share price, the company is valued at around $630m.
Cerberus could look to merge Supervalu’s operations with stores run by portfolio company Albertsons. The firm picked up Albertson’s in 2006 alongside Supervalu and other investors, receiving 655 grocery stores. Supervalu gained more than 1,100 stores and currently runs more than 450 under the Albertsons brand.
AltAssets previously reported that buyout giants KKR, TPG Capital and billionaire Ron Burkle were previously reported to be interested in parts of the retail chain.
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