Supervalu Inc. said it is evaluating a sale of its Save-A-Lot business, among other efforts to separate the discount grocery chain from the company.
Shares of Supervalu rose nearly 6 percent in Wednesday trading following the company's announcement late Tuesday.
Supervalu announced its intention to separate Save-A-Lot in January as bigger rivals such as Wal-Mart Stores Inc. have been increasing their focus on selling groceries.
"Supervalu is... prepared to consider other alternatives to improve stockholder value, and in this regard is also evaluating a possible sale of Save-A-Lot," the company said in a statement late on Tuesday.
Some of the world's largest buyout firms are preparing offers for the Save-A-Lot business, making an outright sale of the U.S. discount grocery chain more likely than a spin-off, Reuters reported on Friday, citing people familiar with the matter.
Supervalu shares rise after executives say they may sell Save-A-Lot
Supervalu had been leaning to a spinoff of Save-A-Lot but that appears to be changing as reports swirl that private equity firms are interested in the discount grocery chain.
Reuters
August 3, 2016 at 8:09PM
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Ismail Shakil
New York-based investment firm Taconic Capital and developer Polaris Properties were optimistic after the 17-story west tower’s renovation completed in late 2024. But tenants were hard to land.
