Possible Buyers Looking at SuperValu

But the company's losses and debt may keep bidders away

By Christopher Freeburn, InvestorPlace Writer


A number of potential buyers are circling struggling supermarket chain SuperValu (NYSE:SVU), 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) and TPG Capital, as well as billionaire investor Ronald Burkle, Bloomberg noted.

Retail Stocks: 3 to Shop, 3 to Drop
Retail Stocks: 3 to Shop, 3 to Drop

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) 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) 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.

Article printed from InvestorPlace Media, https://investorplace.com/2012/10/possible-buyers-looking-at-supervalu/.

©2018 InvestorPlace Media, LLC