SuperValu exploring spinoff of Earth City-based Save-A-Lot business - STLtoday.com
The potential for a spinoff of Earth City-based Save-A-Lot was announced Tuesday by its Minneapolis-based parent, SuperValu Inc. Such a move could free the faster-growing discount chain from the more sluggish elements of SuperValu’s portfolio and provide more value for the company’s shareholders. “We believe Save-A-Lot has significant growth potential,” said Sam Duncan, SuperValu’s chief executive, in a statement. Save-A-Lot, which has 1,300 stores, was founded by Bill Moran, who started with one store in Cahokia in 1977. The chain grew quickly, reaching more than 80 stores by the early 1980s. In 1988, the company was sold to Wetterau Inc. By 1992, the company had increased the Save-A-Lot stable to 350 stores before agreeing to be purchased by SuperValu in a deal worth $1. 1 billion. Splitting off the Save-A-Lot stores would certainly be in line with those previous moves, as SuperValu moves toward the wholesale side of the industry, said Jim Hertel, an analyst with Willard Bishop in Barrington, Ill. And while there’s been no indication that SuperValu is under any such pressure, that environment could be influencing the company’s decisions, said Brian Yarbrough, a retail analyst with Edward Jones. Source: www.stltoday.com
