Supervalu Stockholders OK Merger With UNFI
At a special meeting, Supervalu stockholders approved the proposed acquisition of the company by Providence, R.I.-based United Natural Foods Inc. (UNFI).
Approximately 80.82 percent of the shares of Supervalu common stock outstanding and entitled to vote adopted the previously revealed merger agreement among Supervalu, UNFI, Supervalu Enterprises Inc. and Jedi Merger Sub, Inc., a direct, wholly owned subsidiary of UNFI. These represent about 97.56 percent of the shares voted at the special meeting.
The transaction remains subject to customary closing conditions. Supervalu expects the transaction to wrap up on Oct. 22.
UNFI and Supervalu in July entered a definitive agreement under which UNFI will acquire Supervalu for $32.50 per share in cash, or about $2.9 billion, including the assumption of outstanding debt and liabilities. The news comes the same day that Supervalu announced its Q1 2019 earnings. At the same time, UNFI also revealed that it plans “over time … to divest Supervalu retail assets in a thoughtful and economic manner.”
Minneapolis-based Supervalu serves customers across the United States through a network of 3,606 stores composed of 3,495 wholesale primary stores operated by customers serviced by the company’s food distribution business and 111 traditional retail grocery stores operated under three retail banners in three geographic regions. Supervalu has about 23,000 employees. The company is No. 18 on Progressive Grocer’s 2018 Super 50 list of the top grocers in the United States.