Supervalu Inc. is moving toward a deal to sell Albertsons and Save-A-Lot, the grocer's two largest supermarket chains, to Cerberus Capital Management, Bloomberg News reports. Cerberus, a New York-based private equity firm, would also take an equity stake in what would remain of the Eden Prairie-based business, according unnamed people familiar with the negotiations. Cerberus hopes to finalize a deal before the end of the year.
The Star Tribune reports Supervalu declined to comment on the Bloomberg report, but a spokesperson said the company "continues in active discussion with several parties." Buyout group KKR & Co. and others have also expressed interest in Save-A-Lot.
Talks of a full takeover bid from Cerberus stalled last week after lenders balked at the financing terms.
On Monday, the Wall Street Journal reported that Cerberus was pursing an Albertsons-only deal.
Last month, the struggling grocery retailer announced that it is freezing wages for thousands of employees and cutting its 401K match.
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