The Beginning of the End for the Soda Tax? “Associated Grocers represents a great opportunity for us to further expand our wholesale business into another important region,” said Mark Gross, SUPERVALU’s President and Chief Executive Officer. The deal marks the second completed acquisition of 2017 for Supervalu as it continues to invest in growing its wholesale business. In October, Minnesota-based Supervalu Inc. (NYSE: SVU) acquired Associated Grocers of Florida for $180 million. SUPERVALU took a further step in its expansion into multicultural markets with the acquisition of Associated Grocers of Florida, a transaction valued at approximately $ 180 million. Supervalu also reported a net loss from continuing operations of $25 million, which included a $27 million after-tax asset impairment charge and $16 million of after-tax merger and integration costs. Gross commended “Christopher Miller and his talented team [for] the outstanding work to build and support a dynamic and diverse retailer base...Once the transaction is complete, we can bring the benefits of our combined scale and expertise to their customers to help them better compete in the evolving grocery industry.". Aligns with strategy to be a wholesale-led organisation. Wholesale operating earnings in the second quarter were $61 million, or 2.2 percent of net sales. Get great content like this right in your inbox. Listen in to WGB’s flagship podcast, 10 Items or Less, featuring insights from retailers and industry professionals. The transaction, which was approved by each company’s board of directors, is currently expected to close by the end of calendar year 2017, subject to approval by Associated Grocers’ shareholders and other customary closing conditions. “Additionally, our results now include the benefit of Unified Grocers, where I'm pleased that the transition is going well. Ferrero Fulfills Sweet Tooth with Ferrara Candy Acquisition. “I’m very excited about this announcement,” said Associated Grocers’ President, Christopher Miller. One of the largest grocery wholesalers and retailers in the United States, with annual sales of about $16 billion, Supervalu serves customers across the country through a network of 3,337 stores comprising 3,120 wholesale primary stores operated by customers serviced by its food distribution business and 217 traditional retail grocery stores operated under five retail banners in six geographic regions. Retail operating loss in the second quarter was $58 million, and included a $42 million asset impairment charge, which when adjusted, netted an operating loss of $16 million, or negative 1.5 percent of net sales. Winsight is a leading B2B information services company focused on the food and beverage industry, providing insight and market intelligence to business leaders in every channel consumers buy food and beverage – convenience stores, grocery retailing, restaurants and noncommercial foodservice – through media, events, data products, advisory services, and trade shows. © Copyright 2020, Hispanic Marketing Consultants. When adjusted for this item, last year's second quarter wholesale operating earnings were $49 million, or 2.8 percent of net sales. Supervalu also purchased Associated Grocers of Florida last year for $180 million, giving it access to a fast-growing southeastern region that’s seeing a rush of new retailers. The company operates two distribution centers, has about 650 employees and owns around 1.5 million square feet of real estate. “Supervalu and Associated Grocers share a common dedication and commitment to the independent retailer, and together we’ll be in a great position to provide opportunities, innovation and increased value to our customers, both domestically and in foreign markets.”. Adjusted net earnings from continuing operations came to $18 million, or 46 cents per diluted share. Home » News » SUPERVALU Acquires Associated Grocers of Florida for $180M. Founded in 1945, Associated Grocers of Florida is a retailer-owned cooperative that distributes full lines of grocery and general merchandise to independent retailers, primarily in South Florida, the Caribbean, Central and South America and Asia. Pompano Beach, Fla.-based Associated Grocers is a retailer-owned cooperative that distributes full lines of grocery and general merchandise to independent retailers, mainly in the regions cited above. SUPERVALU Acquires Associated Grocers of Florida for $180M. Supervalu has entered into a definitive agreement to acquire Associated Grocers of Florida, a leading wholesale business, in a $180m deal. “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.”, Added Gross: “We’re looking forward to welcoming the strengths and talents of the Associated Grocers team to Supervalu and working together so that, once the transaction is complete, we can bring the benefits of our combined scale and expertise to their customers to help them better compete in the evolving grocery industry.”, “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,” noted Associated Grocers President Christopher Miller. In other Supervalu news, the company reported its second-quarter financials , among which were consolidated net sales of $3.80 billion and a net loss from continuing operations of $25 million, including a $27 million after-tax asset impairment charge and $16 million of after-tax merger and … Supervalu’s second quarter wholesale net sales were $2.74 billion vs. $1.73 billion last year, an increase of 58 percent. SUPERVALU Acquires Associated Grocers of Florida for $180M September 4, 2020 October 18, 2017 by Hernando Ramírez-Santos SUPERVALU took a further step in its expansion into multicultural markets with the acquisition of Associated Grocers of Florida, a transaction valued at approximately $ 180 million. “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.”. The net sales decrease reflects identical store sales of negative 3.5 percent and closed stores, partially offset by sales from acquired and new stores. Upon the merger’s completion, Associated Grocers will become a wholly owned subsidiary of Supervalu.