Supervalu To Acquire 22 Food Lion Grocery Stores

(RTTNews) - Supervalu Inc. (SVU) said that it agreed to acquire 22 Food Lion grocery stores that are being sold in connection with the merger between Ahold (AHONY.PK, AHODF.PK) and Delhaize (DEG). The 22 Food Lion stores are located in northern West Virginia, western Maryland, south central Pennsylvania and northwestern Virginia.

The acquired stores will be converted to SUPERVALU's Shop 'N Save format and at least initially be operated by SUPERVALU. SUPERVALU is in discussions with certain of its wholesale customers and the Federal Trade Commission (FTC) on ways for its wholesale customers to have an interest in these stores going forward.

The stores being acquired are conventional supermarkets that are approximately 35,000 square feet in size. As Shop 'N Save stores, the plan will be to deliver a full-variety meat department, full-service delis and bakeries and an expanded produce department. Additionally, these 22 stores also will receive comprehensive marketing, advertising, and promotional support, including implementation of the Shop 'N Save loyalty card program, and interactive website and mobile app. The 22 stores currently employ more than 1,200 full and part-time associates and, as part of the acquisition, SUPERVALU anticipates offering employment to substantially all interested employees.

The acquisition of the 22 stores is subject to customary closing conditions, including approval by the FTC, and is expected to be completed in a staggered closing process over the next 105 days.