TORONTO, ONTARIO--(Marketwired - Oct. 17, 2016) -
All amounts in U.S. dollars unless otherwise stated
Onex Corporation ("Onex") (TSX:OCX) today announced it has agreed to acquire the Save-A-Lot business ("Save-A-Lot") from SUPERVALU INC. ("SUPERVALU") for $1.365 billion. Save-A-Lot is one of the largest hard-discount grocery retailers for value-seeking shoppers in the United States. The transaction is anticipated to close by January 31, 2017 subject to customary conditions and regulatory approvals.
Headquartered in St. Louis, Save-A-Lot has a network of approximately 1,370 corporate-owned and licensed stores across 37 states, the Caribbean and Central America. Save-A-Lot stores serve more than five million shoppers each week and offer customers savings of 30% or more compared to traditional grocery stores.
"Save-A-Lot provides its customers with measurable savings and is differentiated among its competitors in a growing segment of the industry," said Matt Ross, a Managing Director with Onex. "We are excited to partner with the management team at Save-A-Lot, along with its licensed store owners, to enhance the company's operations and support its growth for years to come."
"This is an exciting development in the history of Save-A-Lot," said Eric Claus, Save-A-Lot's Chief Executive Officer. "As an independent company, we can more effectively focus on our growth and operating objectives. Onex's experience and successful investment track record, specifically in corporate carve-outs, positions it as a strong partner for us, and we look forward to working with them."
"Save-A-Lot is a terrific organization with a wonderful history and a bright future as part of Onex," said Mark Gross, SUPERVALU's President and Chief Executive Officer. "We're looking forward to continuing our relationship with Save-A-Lot as their professional services provider. This is a great outcome for the company's employees, licensees and customers."
Onex Partners IV will make an equity investment of approximately $660 million, of which Onex' share is approximately $190 million as a limited partner in the Fund.
Onex is one of the oldest and most successful private equity firms. Through its Onex Partners and ONCAP private equity funds, Onex acquires and builds high-quality businesses in partnership with talented management teams. At Onex Credit, Onex manages and invests in leveraged loans, collateralized loan obligations and other credit securities. The Company has approximately $23 billion of assets under management, including $6 billion of Onex proprietary capital, in private equity and credit securities. With offices in Toronto, New York, New Jersey and London, Onex invests alongside its fund investors and is the largest limited partner in each of its private equity funds.
Onex' businesses have assets of $36 billion, generate annual revenues of $23 billion and employ approximately 145,000 people worldwide. Onex shares trade on the Toronto Stock Exchange under the stock symbol OCX. For more information on Onex, visit its website at www.onex.com. The Company's security filings can also be accessed at www.sedar.com.
This news release may contain forward-looking statements that are based on management's current expectations and are subject to known and unknown uncertainties and risks, which could cause actual results to differ materially from those contemplated or implied by such forward-looking statements. Onex is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or otherwise.