Supervalu to sell Save-A-Lot chain for $1.37 billion

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NEW YORK (AP) – Supervalu says it is selling its Save-A-Lot supermarket chain for $1.37 billion to Canadian private equity firm Onex Corp.

The deal is expected to close before the end of January.

Supervalu, based in Eden Prairie, Minnesota, distributes grocery items to supermarkets and provides other services to them. The company also owns the Shop ‘N Save and Cub Foods chains. There are more than 1,300 Save-A-Lot grocery stores around the U.S.

Supervalu first announced plans to sell off Save-A-Lot last year to focus on growing its distribution business. Supervalu says it signed a five-year deal with Save-A-Lot to provide cloud technology, as well as payroll, finance and merchandising technology services.

Shares of Supervalu Inc. jumped 8 percent to $5.41 before the stock market opened Monday.

(Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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