Supervalu announced on Oct. 18 they had finalized a merger agreement to acquire Associated Grocers of Florida. The transaction, which is valued at approximately $180 million, will help Supervalu to gain access to a new part of Florida and enable the organization to introduce its products to Associated Grocers’ customer base in South Florida, the Caribbean and other international markets.
The agreement adds approximately 1.5 million square feet of Associated Grocers’ real estate to Supervalu’s national portfolio. Supervalu has reached a long-term supply agreement with Associated Grocers’ largest customer that will go into effect upon the closing of the transaction.
“Associated Grocers represents a great opportunity for us to further expand our wholesale business into another important region,” said Mark Gross, President and CEO, Supervalu. “We believe SUPERVALU is uniquely positioned to be the supplier of choice across the grocery industry and this acquisition is another example of how we’re delivering on our growth strategy,” Gross added.