A grocery store with a presence in the Miami Valley has been sold by its owner.
Supervalu announced its deal with Onex Corp., which will acquire Save-A-Lot for $1.4 billion in cash. Supervalu and Save-A-Lot will enter into a five-year professional services agreement, according to a company statement.
There are more than five Save-A-Lot locations in the Miami Valley. The sale is expected to be completed by Jan. 31, 2017, pending regulatory approvals and closing conditions.
Save-A-Lot opened a 15,000-square-foot store in April at Breitenstrater Square shopping center in Kettering at the corner of Patterson Road and Wilmington Avenue.
The grocery chain also opened a location at Dayton’s Eastown Shopping Center on Linden Avenue late last year.
Supervalu expects to use the net sale proceeds to pay at least $750 million against its outstanding term loan balance, and will use the remaining amount to reduce debt and improve its capital structure.
“The sale of Save-A-Lot is another important step in Supervalu’s transformation,” said Mark Gross, Supervalu president and CEO. “It provides us with a stronger balance sheet that will allow us to further build on our core strengths and growth opportunities.”
Supervalu brings in $18 billion annually in sales with a network of 3,342 stores nationwide. There are 1,368 Save-A-Lot stores, with 896 operated by licensee owners.
Headquartered in Minnesota, Supervalu has approximately 40,000 employees.