Supervalu Inc. has finalized its $1.4 billion sale of Save-A-Lot, the Earth City-based grocery chain, to an affiliate of Onex Corp.
Supervalu announced Monday that the transaction had closed.
In connection with the closing, Supervalu and Save-A-Lot have entered into a five-year professional services agreement through which Supervalu will provide some back office services to the Save-A-Lot chain.
Supervalu also confirmed Monday that it used $750 million of the proceeds from the sale to prepay a portion of its outstanding term loan. The company plans to use the remaining proceeds to further reduce debt, improve its capital structure, contribute to its pension plan and to fund corporate and growth initiatives.
Read more: St. Louis Business Journal