MINNEAPOLIS -- Supervalu here agreed last week to acquire Cincinnati-based Hyper Shoppes, the parent company of Bigg's.
Supervalu said the purchase would give it "a greater presence" in the rapidly growing supercenter market.
Bigg's operates five supercenters and two 70,000-square-foot supermarkets. Annual sales exceed $500 million, and the retailer recently "completed its best sales year ever," according to a statement from the companies.
Supervalu has owned a minority share of Hyper Shoppes since its founding in 1984, at which time its first store, in Cincinnati, was modeled after the French hypermarket format.
Terms of the all-cash deal were not available. Bigg's operates five supercenters in the 175,000- to 225,000-square-foot range in three separate markets: three in Cincinnati, one in Denver
and one in Louisville, Ky. The company's two supermarkets are in Cincinnati and Louisville.
Michael Wright, chairman, president and chief executive officer of Supervalu, said, "A key reason for the acquisition was to give Supervalu a greater presence in the growing supercenter market." Bigg's, he said, has done "an outstanding job of introducing the supercenter concept wherever they've gone."
Supervalu's ownership should make "a great company even better," Wright said.
Supervalu will operate Hyper Shoppes as a wholly owned subsidiary.
Pierre Wevers, an executive vice president and chief operating officer of Hyper Shoppes, said in a statement that the acquisition will help Bigg's accelerate its new-store plans and its expansion into new markets. He did not name the prospective new markets and a Hyper Shoppes spokeswoman, Sue Schoenling, said the new markets have not been identified.
Wevers is expected to become the president and chief executive officer of Hyper Shoppes following the completion of the deal, according to the spokeswoman.
Gilbert Weil, who is chairman and president of Hyper Shoppes, is expected to leave the company, the spokeswoman said.
Supervalu said the agreement is subject to certain conditions, including waiver of the right of first refusal by Hyper Shoppes' shareholders and the approval of an investor group in the company. Some of Hyper Shoppes' owners are French investors.
Supervalu said it expects to close the deal by mid-August. It has been Bigg's principal supplier since 1984.
