Onex Corporation
is paying about $1.19 billion ($1.365 billion US) to buy the Save-A-Lot supermarket chain in the
United States.
The 472-store chain
is owned by Supervalu of Minneapolis. It’s going to use the cash to pay down
its debts.
The deal also
includes Save-A-Lot’s services, supplies and 896 licensee-owned stores.
Onex once owned the
Beatrice dairy business in Ontario. It stripped assets, such as the company’s
trucks, and then sold the business for a nifty profit.
As part of the
deal, Supervalu and Save-A-Lot have agreed to provide professional services for
five years.
The companies
expect to complete the sale by Jan. 31, 2017, subject to regulatory approvals
and other customary closing conditions.
