SuperValu puts Denver operations up for sale
Oct 15, 2003 12:00 PM, from staff and wire reportsSuperValu Inc, the Minneapolis MN-based grocery retailer, has announced the sale of its Denver CO-based operations that include nine retail stores and a warehouse facility. Four of the nine retail stores and the distribution warehouse building will be sold to the Kroger Co. SuperValu is continuing discussions with other interested parties concerning the sale of the remaining retail stores. Financial terms of the transaction were not disclosed. The transaction with Kroger is expected to close by late November 2003.
"The decision to sell our Denver-based operations is the result of a thoughtful and disciplined asset rationalization program that we began implementing more than two years ago," said Jeff Noddle, SuperValu chairman and chief executive officer. "Neither our retail nor our distribution operations in Denver generated sufficient volume or growth prospects to justify a continued capital investment. By deploying our capital to SuperValu's best growth opportunities in both retail and distribution, we can build upon the successes in our core markets while improving our return on invested capital."