Barclays Share News (BARC)

* Selling Albertsons, Acme, Jewel-Osco, Shaw's, Star Market * Investor group is led by Cerberus * Cerberus group to bid for 30 percent of Supervalu shares By Olivia Oran and Jessica Wohl Jan 10 (Reuters) - Supervalu Inc, the No. 3 U.S.grocery store operator, struck a deal to sell five of its retailgrocery chains to an investor group led by Cerberus CapitalManagement LP, the company said on Thursday. Supervalu, which also reported a quarterly profit, said itwould sell the Albertsons, Acme, Jewel-Osco, Shaw's and StarMarket chains and related Osco and Sav-on in-store pharmacies.The transaction will be valued at $3.3 billion. The investor group includes real estate firms Kimco RealtyCorp, Klaff Realty LP, Lubert-Adler Partners andScottenstein Real Estate Group. As part of the deal, a Cerberus-led group will launch atender offer for up to 30 percent of Supervalu's common stock at$4 per share, which represents a 50 percent premium to the30-day average closing share price. Cerberus will reunite its newly purchased Albertsons storeswith those it already owns. Cerberus acquired 655 Albertonslocations in 2006. After the deal, Supervalu's business will include a foodwholesaler serving 1,950 U.S. stores; the discount grocery chainSave-A-Lot, which offers a smaller assortment of low-pricedmerchandise than a typical grocery store; and the regionalgrocery chains Cub, Farm Fresh, Shoppers, Shop 'n Save andHornbacher's. Supervalu said those remaining businesses should generateannual revenue in excess of $17 billion. In the fiscal yearended in February 2012, the company's total revenue was $36.1billion. Goldman Sachs Group Inc and Greenhill & Co Inc advised Supervalu on the transaction. Lazard andBarclays PLC advised Cerberus. Minneapolis, Minnesota-based Supervalu reported a quarterlyprofit of $16 million, or 8 cents per share, for the thirdquarter ended Dec. 1, compared with a year-earlier loss of $750million, or $3.54 per share. Excluding an after-tax gain related to a cash settlementfrom credit card companies and after-tax charges primarilyrelated to store closures, it earned $5 million, or 3 cents pershare, in the latest quarter. Sales fell 5 percent to $7.91 billion. The company has been losing customers to rival food sellerssuch as Wal-Mart Stores Inc and Kroger Co, andhas been trimming prices in markets such as Chicago to keep upwith the competition. Supervalu's most attractive asset is considered to beSave-A-Lot, which accounts for about 10 percent of the company'soverall sales. Its other grocery stores contribute 65 percent oftotal revenue, while its grocery distribution businesscontributes 20 percent. Supervalu's grocery stores reported a 4.5 percent decline insales at identical stores ion the latest quarter. The companydefines that measure as sales at supermarkets operating for fourfull quarters, including store expansions, and excluding fuelsales. Identical store sales at Save-A-Lot declined 4.1 percent. Supervalu expects to trim about $400 million of debt thisfiscal year, and sees capital spending of about $500 million,including plans for new Save-A-Lot stores and about 40 storeremodels.