Possible Buyers Looking at SuperValu

by Christopher Freeburn | October 3, 2012 12:13 pm

A number of potential buyers are circling struggling supermarket chain[1] SuperValu (NYSE:SVU[2]), but no bids have emerged yet.

Among those interested in acquiring at least part of the company are private equity firms Cerberus Capital Management, Kolhberg Kravis Roberts (NYSE:KKR[3]) and TPG Capital, as well as billionaire investor Ronald Burkle, Bloomberg noted.

Supervalu, which has been looking for bids from potential buyers, has moved its deadline for buyout offers beyond October 15. The company said in July that Goldman Sachs (NYSE:GS[4]) was advising it on possible moves.

In the last two years, SuperValu has lost $2.5 billion while its market value has tumbled more than 75%. Its ongoing losses and $6 billion in long-term debt are majors hurdle in attracting a bid for the company.

Sources say that rival Midwest supermarket chain Spartan Stores (NASDAQ:SPTN[5]) has indicated that it might consider acquiring some of SuperValu’s regional stores.

While the company would prefer to be acquired as a single unit, the variety of divergent retail brands it operates may complicate that goal.

Shares of the supermarket operator rose fractionally in Wednesday mid-day trading.

Endnotes:
  1. potential buyers are circling struggling supermarket chain: http://www.bloomberg.com/news/2012-10-02/supervalu-said-to-attract-interest-from-burkle-kkr-tpg-capital.html
  2. SVU: http://studio-5.financialcontent.com/investplace/quote?Symbol=SVU
  3. KKR: http://studio-5.financialcontent.com/investplace/quote?Symbol=KKR
  4. GS: http://studio-5.financialcontent.com/investplace/quote?Symbol=GS
  5. SPTN: http://studio-5.financialcontent.com/investplace/quote?Symbol=SPTN

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