NEW YORK Supervalu Inc. says it reached a deal to sell five of its biggest grocery chains, including Shaw’s and Star Market, for $100 million in cash plus more than $3 billion in debt.
The sale to AB Acquisition, an investor group led by Cerberus Capital Management, will include 877 stores.
The group will acquire the stores for $100 million in cash, and the new company will assume $3.2 billion in existing debt.
There’s no word yet on how the deal with affect local stores. Last November, Supervalu laid off 700 Shaw’s and Star Market workers.
Supervalu said grocery retail veteran Sam Duncan will replace CEO and Chairman Wayne Sales after the sale.
With reporting by The Associated Press and the WBUR Newsroom