Supervalu: Albertsons Sale Offers Potential For Fresh Start

Mon, 17 Jun 2013 17:35:03 GMT

Source: seekingalpha.com --- Monday, June 17, 2013
By Saibus Research : We were pleased that Supervalu ( SVU ) was able to consummate its deal with Cerberus Capital Management and Cerberus's strategic partners Kimco Realty, Klaff Realty and Schottenstein Real Estate Group with regards to the divesture of SVU's Albertsons, Acme, Jewel-Osco, Shaw's and Star Market retail grocery store operations, as well as the related in-store pharmacies supporting these stores. While SVU will only realize $100M in cash from the sale of these stores and has recognized a $1.15B accounting loss from the sale of these operations, at least it was able to shed $3.2B of outstanding debt. Furthermore, it allows SVU to close the book on its 2006 debt-funded acquisition of Albertsons and give its organization a somewhat fresh start. We can tell that the Albertsons acquisition did not work out because SVU's operating cash flows declined by 48% from 2008 to 2013 and it wrote-off $8B in impairment charges Complete Story » ...