Bidders Find Value in 107 Supervalu Fuel Centers
EDEN PRAIRIE, Minn. -- Supervalu has sold off 107 of its fuel centers to Tesoro, Couche-Tard/Circle K, Holiday Stationstores and Stinker. The four-way sale leaves the company with 27 fuel centers as it continues to seek potential buyers.
The separate transactions include the majority of fuel centers within the Albertsons, Cub Foods, Hornbacher's and Jewel-Osco banners. All deals are slated to be finalized this fall.
As a result of the deals, Supervalu can create capital that the company can use to strengthen its business. All four also include partnership opportunities that will allow Supervalu to continue to offer fuel rewards programs to its customers through the fuel centers and, in some markets, through an expanded network of fuel centers.
The purchases breakdown as follows:
- Tesoro will acquire 51 Albertsons fuel centers in California, Nevada, Oregon, Utah, Washington, Wyoming and Idaho.
- Couche-Tard/Circle K will take 27 Jewel-Osco fuel centers, primarily located in the Chicagoland area.
- Holiday Stationstores will purchase 15 fuel centers: eight from Cub Foods in Minnesota, two from Hornbacher's in North Dakota and five from Albertsons in Montana.
- Stinker will buy 14 Albertsons fuel centers in Southern Idaho.
"As we execute on our strategic plan, we are continually reviewing all areas of our business to identify opportunities to strengthen our market position, reduce costs or generate capital that can be reinvested into the business," said Pete Van Helden, executive vice president for retail operations at Supervalu. "These transactions help us further execute on our transformation plan, while also creating an opportunity for us to partner with major fuel retailers to bring broader fuel rewards programs to our customers."
Tesoro has been busy lately. It is also leasing 241 retail locations, primarily across Southern California. It will take possession of the stations in a phased process, with approximately 190 stations online in 2012 and the balance of approximately 50 stations in 2014.