Featured Company News – SUPERVALU Completes Unified Grocers Acquisition

Research Desk Line-up: Kroger Post Earnings Coverage

LONDON, UK / ACCESSWIRE / June 27, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for SUPERVALU Inc. (NYSE: SVU), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=SVU. The Company revealed on June 23, 2017 the completion of its previously announced acquisition of Unified Grocers, in a transaction valued at $390 million. Founded in 1922, Unified Grocers is a wholesale grocery distributor with supply chains across the Western United States. For immediate access to our complimentary reports, including today’s coverage, register for free now at:

http://protraderdaily.com/register/

Discover more of our free reports coverage from other companies within the Grocery Stores industry. Pro-TD has currently selected The Kroger Co. (NYSE: KR) for due-diligence and potential coverage as the Company reported on June 15, 2017, its financial results for Q1 2017. Tune in to our site to register for a free membership, and be among the early birds that get our report on Kroger when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on SVU; also brushing on KR. Go directly to your stock of interest and access today’s free coverage at:

http://protraderdaily.com/optin/?symbol=SVU

http://protraderdaily.com/optin/?symbol=KR

The Announcement

Supervalu, the Minneapolis-based Company, made the announcement in regards to this agreement on April 10, 2017, pursuant to which Supervalu paid $114 million in cash for all the outstanding stock of Unified Grocers. The Company additionally assumed and paid off $261 million in debt. This announcement brings together two highly complementary grocery wholesale organizations where the combined sales for both Companies stood at $16 billion in 2016.

While Supervalu is one of the largest grocery wholesalers and retailers in the US with annual sales of about $12 billion in FY17, Unified Grocers and its subsidiaries offer independent retailers different resources needed to compete in the supermarket industry. Supervalu currently serves customers across the United States through a network of 2,363 stores, including 1,902 stores operated by wholesale customers serviced primarily by the Company’s food distribution business.

Company’s Unified Growth Strategy

Supervalu initiated the shift in its focus away from retailing in 2013 when it sold Albertsons, which it had acquired in 2006, along with four other chains. Supervalu recently announced the sale of its Save-A-Lot business to an affiliate of Onex Corporation for $1.37 billion in cash, in December 2016, subject to customary closing conditions. The Company, however, resumed back office services to Supervalu under a five-year professional services agreement. Post the successful completion of the sale, Supervalu banked on more investment opportunities in its own business.

Supervalu used the proceeds of about $750 million from the transaction to prepay the portion of its outstanding term balance.

This sale-agreement was closely followed by the acquisition of Unified Grocers. Now, post the closure of the deal, both Supervalu and Unified Grocers will expand from the current 24 distribution centers and a combined customer base of over 3,000 stores. This acquisition is set to generate multiple growth opportunities across different geographies for the two Companies, including the expansion of Unified Market Centre division, a business focused at delivering specialty and ethnic products to independent customers.

According to Mark Gross, CEO of Supervalu, the Company will explore new acquisition opportunities to expand across new markets while leveraging the existing client base of Unified Grocers. The Company’s net consolidated sales were $2.91 billion while the net earnings stood at $6 million. Net earnings for Supervalu for Q4 FY17 stood at $30 million. However the Company’s performance for the retail segment declined in Q4 FY17 as net sales came in at $1.07 billion against $1.11 billion in Q4 FY16.

Last Close Stock Review

On Monday, June 26, 2017, SUPERVALU’s stock closed the trading session at $3.03, climbing 3.06% from its previous closing price of $2.94. A total volume of 3.04 million shares were exchanged during the session. Shares of the Company have a PE ratio of 35.23 and currently have a market cap of $819.13 million.

Pro-Trader Daily:

Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the “Author”) and is fact checked and reviewed by a third party research service company (the “Reviewer”) represented by a credentialed financial analyst, for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charterholder (the “Sponsor”), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you’re a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: contact@protraderdaily.com

Phone number: (917) 341.4653

Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Pro-Trader Daily

ReleaseID: 466839