Business

Cerberus to buy Shaw’s, Star Market from Supervalu

NEW YORK (AP) — Supervalu Inc. says it reached a deal to sell five of its biggest grocery chains — Albertsons, Acme, Jewel-Osco, Shaw’s and Star Market — for $100 million in cash plus more than $3 billion in debt.

The sale to AB Acquisition, an investor group led by Cerberus Capital Management, will include 877 stores.

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The group will acquire the stores for $100 million in cash, and the new company will assume $3.2 billion in existing debt.

Following the sale, Supervalu will consist of a food wholesaler, Save-A-Lot, and regional chains Cub, Farm Fresh, Shoppers, Shop ‘n Save and Hornbacher’s.

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Supervalu said grocery retail veteran Sam Duncan will replace CEO and Chairman Wayne Sales after the sale.

In November, West Bridgewater-based Shaw’s said it planed to cut 700 jobs, or just under 4 percent of its total employee headcount. Total headcount after the reduction would be about 17,000, a company spokesman said then.

Material from Globe staff was used in this report.

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