Supervalu completes Unified deal

Supervalu on Friday said it had closed on the purchase of Unified Grocers Inc., providing the Minneapolis wholesaler with distribution to independent grocers on the West Coast.

Supervalu announced the $390 million deal in April, using proceeds generated by the 2016 sales of its Save-A-Lot discount business. On Friday the company said the purchase comprised of $114 million in cash to Unified Grocers’ shareholders for 100% of its stock; and the assumption and pay-off of $276 million in Unified debts.

“The completion of this transaction is a significant step forward for SUPERVALU and the growth of our wholesale business,” Mark Gross, president and CEO of Supervalu, said in a statement. “Our teams are fully engaged in the important work of integrating these two great organizations with a continued focus on delivering for our customers and stockholders. We’re excited about working with the many talented associates to supply and serve our expanded and highly diverse customer base.”

Unified, a cooperative, had 345 members at the end of fiscal 2016 and sales of around $3.8 billion.