Sign up Australia
Proactive Investors - Run By Investors For Investors

United Natural Foods takes over Supervalu in US$2.9bn deal

The deal widens United Natural Food's range of natural and organic products to include more conventional foods
grocery aisle
United Natural Foods boasts a long-time relationship with's Whole Foods

United Natural Foods Inc (NASDAQ:UNFI) is broadening its reach, with the takeover of the grocery retailer Supervalu Inc (NYSE:SVU).

The acquisition, which is worth US$2.9bn including debt, widens United Natural Food’s range of products to include more traditional foods in addition to its base in natural and organic products and helps the company to gain access to new customers.

“Combining our leading position in natural and organic foods with Supervalu’s presence in fast-turning products makes us the partner of choice for a broader range of customers," United Natural Foods CEO Steve Spinner said in a statement.

Based in Providence, Rhode Island, United Natural has benefited for many years from its long-standing sales relationship with’s Whole Foods.

READ: Amazon throws down the gauntlet by buying online pharmacy PillPack

United Natural Food’s cash offer of US$32.50 per share for each share of Supervalu represents a 67% premium to Supervalu’s closing share price of $19.45 on Wednesday.

On the back of the news, investors sent Supervalu shares up by 64.6% to US$32 in morning trade while United Natural Foods slipped 14% to US$35.36.

Headquartered in Minneapolis, Minnesota, Supervalu has come under pressure for several months from an activist investment firm Blackwells Capital LLC to radically change its business. Its shareholders were expected to vote on another slate of alternative board members which Blackwells had put forth next month, according to the Wall Street Journal.

United Natural will fund its takeover of Supervalu with debt. Its CEO Steve Spinner will take charge of the combined company while Sean Griffin, the company’s chief operating officer, will oversee the merger of the two companies.

Separately, Supervalu posted a fiscal first-quarter net loss Thursday of US$27mln or US$0.55 per share, down from a profit of US$9mln, or $0.30 per share in the year-ago period.

View full UNFI profile View Profile

United Natural Foods Timeline

Related Articles

April 17 2018
The group's major shareholders have staunchly supported the business while the AIM-listed group sorts out its financial position

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use