Cerberus Group Said Close to Deal for Supervalu Brands, Stake

A group led by Cerberus Capital Management LP is close to announcing a deal to buy 5 retail store brands from Supervalu Inc. (SVU) in a transaction valued at $3.2 billion, said a person with knowledge of the matter.

Most of that will be financed with debt, said the person, who asked not to be named because the process is private. Separately the group is offering $3.50 to $4 a share for up to a 30 percent stake in Supervalu, according to that person.

Representatives at Supervalu and Cerberus didn’t immediately return calls seeking comment.

In July, Supervalu said it was working with Goldman Sachs Group Inc. and Greenhill & Co. to examine options. During the sale process, the company attracted interest in parts of its business from billionaire Ronald Burkle, as well as private- equity firms KKR & Co. and TPG Capital, people with knowledge of the matter have said.

To contact the reporter on this story: Cristina Alesci in New York at calesci2@bloomberg.net

To contact the editor responsible for this story: Jeffrey McCracken at jmccracken3@bloomberg.net

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