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Minneapolis-Based SUPERVALU to Acquire 29 Stores of Randall Stores Inc., Mitchell, SD-Based Retailer.

MINNEAPOLIS, Oct. 22 /PRNewswire/ -- SUPERVALU INC. (NYSE: SVU) and Randall Stores, Inc., today announced that SUPERVALU will acquire the 29 supermarkets owned by Randall's in a purchase of the stock of Randall Stores, Inc. for cash. Included in the transaction, which is expected to be completed in early 1999, are ten Cub Foods stores in Illinois, Iowa, Minnesota, Missouri, Nebraska, and Wisconsin; six Randall Foods stores in Iowa, South Dakota and Wisconsin; two County Market stores in Minnesota and Wisconsin; two SUPERVALU stores in Iowa and Nebraska; seven Save-A-Lot limited assortment stores in Iowa, Kentucky, Missouri and Nebraska; and two Randall Valu Centers in Minnesota.

"This combination represents a logical step for our two organizations," said Ron Randall, president and CEO of the Mitchell, S.D. based food retailer. "SUPERVALU has been our supplier since my late father, F. Dwain 'Doc' Randall opened our first store in Flandreau, S.D. in 1950. Given the size and scope of SUPERVALU's retail operations, we believe that this combination gives us the ability to grow faster and thereby expand career opportunities for our associates." The approximately 3,000 store employees of Randall's were informed of the pending transaction today at store meetings.

"We at SUPERVALU are delighted with this merger. Randall's is an outstanding retailer and has been one of our largest and best customers for nearly 50 years," said Mike Wright, chairman and CEO of Minneapolis-based SUPERVALU. "Randall's has a talented management team and terrific store associates. In addition to gaining a great group of associates, this acquisition is a further step in our continuing move to expand SUPERVALU's retail food operations, as it creates ownership in markets where we currently do not own stores."

Wright explained that all the stores will remain in operation and no changes in employment are anticipated at the store level.

The transaction is subject to Federal Trade Commission and other approvals. Terms of the transaction were not disclosed.

SUPERVALU is the nation's leading food distribution company and the twelfth largest food retailer, with annual sales of $17.2 billion at the end of February 1998. As of its most recent quarter-end on September 12, 1998, SUPERVALU owned 334 stores, principally under the following banners: Cub Foods, Shop 'n Save, bigg's, Scott's Foods, Save-A-Lot, Laneco and Hornbachers. Cub Foods and Save-A-Lot also have franchised and licensed stores respectively. In total, SUPERVALU supplies some 5,100 stores in 48 states. Mitchell, S.D. based Randall's is a privately-owned retailer with 29 food stores in Illinois, Iowa, Minnesota, Missouri, Nebraska, South Dakota and Wisconsin.

(see attached list of Randall Stores)

Randall Stores, Inc.

Store List

Total: 29 Stores in 8 States

Illinois, Iowa, Kentucky, Minnesota, Missouri, Nebraska, South Dakota, Wisconsin

10 Cub Foods Stores

Ames, Iowa

Eau Claire, Wisconsin

Iowa City, Iowa

Mankato, Minnesota

Omaha, Nebraska

Peoria, Illinois

Rochester, Minnesota

St. Joseph, Missouri

Sioux City, Iowa (2 stores)

6 Randall Foods Stores

Cedar Rapids, Iowa

Eau Claire, Wisconsin

Ft. Dodge, Iowa

Huron, South Dakota

Mitchell, South Dakota

Sioux Falls, South Dakota

7 Save-A-Lot Stores

Claycomo, Missouri

Kansas City, Missouri (2 stores)

Lexington, Kentucky (2 stores)

St. Joseph, Missouri

Sioux City, Iowa

2 Randall Valu Center Stores

Mankato, Minnesota

New Ulm, Minnesota

2 SUPERVALU Stores

Sioux City, Iowa

South Sioux City, Nebraska

2 County Market Stores

Fairmont, Minnesota

Racine, Wisconsin
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Publication:PR Newswire
Geographic Code:1USA
Date:Oct 22, 1998
Words:550
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