Supervalu, the parent company of Kirkwood-based grocery chain Shop ‘n Save, has agreed to be acquired by grocery wholesaler United Natural Foods, Inc., or UNFI, for about $2.9 billion, the companies announced Thursday in a press release.
UNFI, based in Providence, Rhode Island, will pay $32.50 per share in cash and assume the outstanding debt of Minneapolis-based Supervalu.
Supervalu is one of the largest grocery businesses in the U.S. and reported about $14 billion in revenue for fiscal 2018. The company has both wholesale and retail operations. UNFI plans to divest the retail properties over time, according to the release.
The deal comes less than three months after Supervalu announced it plans to sell off Shop ‘n Save, the Kirkwood-based chain. At the time of that announcement, Shop ‘n Save had 36 stores in the St. Louis area.
The Supervalu deal will allow UNFI, which specializes in distribution of organic and health food, to reach new customers by expanding its product range, Steve Spinner, chairman and chief executive officer of UNFI, said in the release. The companies also expect the deal to bring about $175 million in annual cost savings within three years.