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News For SVU From The Last 14 Days
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November 20, 2015
16:17 EDTSVUSupervalu weighs sale of Save-A-Lot as alternative to spinoff, Reuters reports
Supervalu is considering an outright sale as an alternative to a spin-off of its discount grocery retail chain Save-A-Lot, Reuters reports, citing people familiar with the matter. Supervalu has fielded interest in Save-A-Lot from multiple private equity firms, and has explained that it will weigh offers once it registers the unit with regulators for a spin in early 2016, the sources said. Reference Link
15:45 EDTSVUSupervalu weighs sale of Save-A-Lot as alternative to spinoff, Reuters reports
November 11, 2015
11:56 EDTSVURoundy's surges after agreeing to be acquired by Kroger for $3.60 per share
Shares of Midwest supermarket chain Roundy's (RNDY) are surging after the company agreed to be acquired by Kroger (KR) for $3.60 per share in cash. WHAT'S NEW: Kroger this morning said it will buy Roundy's for $3.60 per share in cash. The terms of the agreement were unanimously approved by the boards of both companies. Kroger said it expects the merger to be slightly accretive to earnings in the first full year after closing, excluding merger-related expenses, and said the transaction won't impact its long-term net earnings per diluted share growth rate of 8%-11%, plus a growing dividend. Kroger said it plans to finance the transaction with debt, and refinance Roundy's existing debt of $646M based on market conditions. Kroger said Roundy's will be run as a subsidiary of Kroger, headed by "key members of Roundy's senior management team." No store closings are expected. In a statement, Robert Mariano, chairman of the board, president and chief executive officer of Roundy's, said, "We are excited about becoming part of The Kroger Co. This is a great win for our customers, communities, employees and our shareholders." WHAT'S NOTABLE: Roundy's also reported third quarter results that missed analysts' expectations. The company said Q3 adjusted earnings per share was (13c) on revenue of $979.91M, missing consensus estimates of (9c) and $979.91M, respectively. Same-store sales fell 3.4% in the quarter year-over-year. The company forecast fourth quarter adjusted EPS of (2c)-4c on revenue of $995M-$1.01B, versus analysts' consensus estimates of 2c and $1.02B, respectively. SSS are seen falling 2.5%-3.5% in Q4. Roundy's lowered its fiscal year 2015 adjusted EPS view to (12c)-(18c) from (6c)-(17c), below the consensus of (11c), and narrowed its revenue view for the year to $3.95B-$3.96B from $3.95B-$3.99B, short of analysts' consensus estimates of $3.98B. The company sees FY15 SSS down 2.9%-3.1%. Mariano commented that Q3 sales and EBITDA "did not meet our expectations," noting that the sales miss was primarily due to continued competitive store openings in our Wisconsin markets. PRICE ACTION: In late morning trading, Roundy's rose $1.39, or about 64%, to $3.58 on nearly twenty times its average daily trading volume. Including today's advance, the shares have gained approximately 8.7% over the past 12 months. Shares of Kroger are down 0.3% to $37.17. OTHERS TO WATCH: Other supermarket chains include Supervalu (SVU), down 1.5% and Weis Markets (WMK), down 0.9%.

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