SuperValu Inc., owner of Cub Foods, along with four Twin Cities-based independent grocery retailers, announced each have entered into definitive agreements to acquire 18 Rainbow Foods grocery stores.
Roundy’s is slated to sell these 18 stores for roughly $65 million plus inventory. SuperValu’s purchase price across its multiple purchase agreements is roughly $35 million in addition to the cost of inventory scheduled for purchase at the closing of the Rainbow store sale. Additionally, SuperValu will assume certain lease obligations and certain multi-employer pension liabilities related to the stores acquired by SuperValu.
Jerry’s Enterprises, Haug Enterprises, Lund Food Holdings and Radermacher Enterprises have joined SuperValu in carrying out these agreements. Upon completion of the acquisition, the acquired stores will be operated by SuperValu, a Cub franchisee or an independent retailer as 10 new Cub Foods locations, two new Byerly’s locations and six locations are anticipated to operate under the Rainbow banner.
Of the 18 stores, SuperValu will have 100 percent ownership in three Cub stores, majority ownership in two Cub stores, minority ownership in three Cub stores and 100 percent ownership in two Rainbow stores, as well as 100 percent ownership interest in 11 pharmacies.
Cub Foods consists of a combination of corporate-owned and franchised locations. Following the close of the transactions, Cub Foods will total more than 65 stores in the Twin Cities and more than 75 stores banner-wide.