Supervalu acquiring Unified Grocers

Minneapolis-based Supervalu Inc. said yesterday that it is merging with Commerce, Calif.-headquartered Unified Grocers in a $375 million deal that its architects contend will create a company that’s “uniquely positioned to efficiently serve a broad range of independent customers and offer a diverse array of value-added services, helping customers compete in an increasingly demanding grocery environment.”

The transaction will bring together two highly complementary grocery wholesaler organizations that had combined sales of about $16 billion in 2016.

“We’re thrilled at the opportunity to bring together these two great organizations,” said Supervalu President and CEO Mark Gross. “By acquiring the Unified business, including gaining a wealth of expertise and talent, we will become a stronger and more efficient organization. The transaction will enhance our ability to help our customers better compete in the evolving grocer industry.”

Gross added that Unified’s experience with retailers that serve Hispanic and many other ethnic groups is a big plus.

Together, Supervalu and Unified operate 24 distribution centers supplying customers in 46 states and serve a combined customer base of more than 3,000 stores. The acquisition provides new growth opportunities across multiple geographies, including the expansion of Unified’s Market Centre division, a growing business providing specialty and ethnic products to independent customers.

“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,” said Unified President and CEO Bob Link in a statement.

Unified Grocers will operate as a wholly owned subsidiary of Supervalu.