Kimco Realty part of Supervalu deal

New Hyde Park, N.Y. — In the much-watched deal between Supervalu and a consortium of investors led by Cerberus Capital Management, Kimco Realty Group – along with several other real estate companies — has emerged as a player.

The transaction, finalized Thursday, involves the sale by Supervalu Inc. of its Albertsons, Acme, Jewel-Osco, Shaw’s and Star Market stores and related Osco and Sav-on in-store pharmacies for about $3.3 billion.

As a part of the acquiring group, Kimco will hold an approximate 15% interest; funding of up to $76.5 million is expected to come from existing cash balances, existing credit facilities and cash from operations.

“We are excited about adding to our successful investment in Albertsons which will reunite all of the Albertsons stores,” said Kimco CEO Dave Henry.

Other members of the investment group include Klaff Realty, Lubert-Adler Partners and Schottenstein Real Estate Group.

Post-transaction, Supervalu will consist of a food wholesaler, 1,300 Save-A-Lot stores, and regional banners Cub, Farm Fresh, Shoppers, Shop ‘n Save and Hornbacher’s.

Under the new ownership, Supervalu will be led by former OfficeMax CEO and grocery vet Sam Duncan, who replaces current president, CEO and chairman Wayne Sales.