SRZ advised Cerberus Capital Management LP as the lead investor in a consortium’s $3.3 billion acquisition from SUPERVALU INC. of its Albertsons, Acme, Jewel-Osco, Shaw’s and related Osco and Sav-on in-store pharmacies (the “Banners”). SUPERVALU, a publicly-traded company, is one of the largest U.S. grocery businesses.
The Banner acquisition, which was announced Jan. 10, 2013, involves cash payment and assumption of debt. As part of the transaction, the consortium will also conduct a tender offer for up to 30 percent of SUPERVALU’s outstanding common stock. The $4 per-share price represents a 50 percent premium over SUPERVALU’S 30-day average closing price prior to announcement of the transaction. The transactions are expected to close in the first calendar quarter of 2013. Following the closing, the Cerberus-led consortium will have three designees on the SUPERVALU eleven-member board. Kimco Realty, Klaff Realty, real estate investment company Lubert-Adler Partners and the Schottenstein Real Estate Group joined Cerberus as part of the consortium.
The cross-practice team representing Cerberus and Albertson’s included mergers & acquisitions partners Stuart D. Freedman, Robert B. Loper and John M. Pollack, special counsel Kimberly M. Monroe and associates Elliott Tapp,Matthew J. Gruenberg, Kristen P. Poole, Daniel Belostock and Pavel Shaitanoff; securities & capital markets partnerMichael R. Littenberg and special counsel James Nicoll; tax partners Alan S. Waldenberg and Kurt F. Rosell and associate Misti M. Bridges; employment & employee benefits partners Ronald E. Richman, Laurence M. Moss and special counsel Scott A. Gold; finance partner Ronald B. Risdon, special counsel Lynn S. Tanner and associate Jae Y. Kim; intellectual property, sourcing & technology partner Robert R. Kiesel, special counsel Scott M. Kareff and associates Watt Wanapha and Melissa B. Karp; environmental partner Howard B. Epstein and associate Valerie L. Sheaffer; antitrust and litigation partner Michael E. Swartz; antitrust and mergers & acquisitions partner Peter Jonathan Halasz and associate Beverly J. Ang; and real estate partners Jeffrey A. Lenobel, Marshall S. Brozost andJulian M. Wise and associate Joshua J. Cohen.
