US retail and wholesale firm Supervalu has reached a merger agreement to acquire food retail distribution company Associated Grocers of Florida, for the sum of $180 million.
According to Progressive Grocer, the deal will enable Supervalu to expand to new parts of Florida and leverage Associated Grocers of Florida’s large customer base in South Florida, the Caribbean, Central and South America and Asia.
Associated Grocers of Florida operates two distribution centres and reported revenues of around $650 million in the financial year ending 29th July 2017.
Commenting on the deal, Supervalu president and CEO Mark Gross said: “We believe Supervalu is uniquely positioned to be the supplier of choice across the grocery industry, and this acquisition is another example of how we’re delivering on our growth strategy”.
Associated Grocers of Florida president Christopher Miller commented: “Being a part of Supervalu will provide us with access to resources, products, services and overall capabilities that are essential to helping us continue to provide top-notch support to our customers”.
Associated Grocers of Florida distributes groceries and merchandise to independent retailers with conventional, specialty and ethnic stores within its client portfolio. As part of the deal, Supervalu has agreed to supply Associate Grocers of Florida’s largest customer in the long-term.
Source: Progressive Grocer