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.
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.
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.