News

Supervalu’s Latest SEC Filing Suggests Save-A-Lot Spinoff Is Coming Soon

The food giant also described how it plans to potentially distribute stock once Save-A-Lot goes public.

Supervalu’s Latest SEC Filing Suggests Save-A-Lot Spinoff Is Coming Soon
The possibility of Supervalu spinning off its discount grocery chain Save-A-Lot took one step closer to reality Monday evening.
 
Eden Prairie-based food conglomerate Supervalu issued early drafts to the U.S. Securities and Exchange Commission regarding its separation of Save-A-Lot.
 
The filing, which is the most formal and thorough documentation of the spin-off plan to date, details a 60/40 stock split of Save-A-Lot once it goes public. If nothing changes, 60 percent of the stock will be proportionally distributed to Supervalu stockholders. Supervalu CEO Mark Gross did not state what the pro rata distribution would be as it will likely be finalized later on.
 
The other 40 percent of the stock will be retained by Supervalu, although the company said it “plans to dispose” of at least half of those shares within two years. “Supervalu has no plans to acquire any additional Save-A-Lot common stock following the distribution,” Gross added in the filing.
 
Supervalu has been prepping the spinoff of its Save-A-Lot brand for months and has even made strategic hirings of executives skilled in shepherding spinoffs or sales.
 
Over the past several years, the company has also been growing the corporate store side of its business and attempting to shrink the number of licensed Save-A-Lot stores.
 
To date, 472 of the 1,368 Save-A-Lot stores (or roughly 35 percent) are corporate owned. However, the company’s fiscal 2017 first quarter shows that corporate stores make up nearly half of Save-A-Lot’s revenue stream.
 
Save-A-Lot is located throughout the eastern half of the United States with heavy concentrations in Kentucky, Ohio, Indiana and Florida. The discount grocery chain employs about 9,300 people and is valued at more than $1.7 billion.
Newsletter Sign Up