Grocery retailer Supervalu has signed an agreement to acquire US-based wholesale distributor Unified Grocers for $375m.
Upon completion of the merger, Unified Grocers will serve as a wholly owned subsidiary of Supervalu.
Jointly operating 24 distribution centres, Supervalu and Unified supply to customers in 46 states and serve a combined customer base of more than 3,000 stores.
Supervalu president and CEO Mark Gross said: “The transaction will enhance our ability to help our customers better compete in the evolving grocery industry.
“Unified’s members and customers operate some of the country’s most exciting and progressive Hispanic and multiple other ethnic formats, specialty, gourmet, natural/organic, price impact and traditional stores.”
The acquisition will provide new growth opportunities across multiple geographies, including the expansion of Unified’s Market Centre division that offers specialty and ethnic products to independent customers.
Once the deal closes, Supervalu will maintain its presence in California, Unified’s headquarters, and throughout the West Coast.
Unified Grocers president and CEO Bob Ling said: “We believe this transaction will benefit the members and customers of Unified Grocers as they look for new and innovative ways to serve the communities in which they operate.”
Subject to approval by Unified’s shareholders and other customary closing conditions, the transaction is expected to close this year.
Supervalu has a network of 2,067 stores comprising 1,850 stores operated by wholesale customers, 195 traditional retail grocery stores and 22 stores under the Shop 'N Save name in Maryland, Pennsylvania, Virginia, and West Virginia.