Albertson’s LLC, the supermarket chain formed by a private group including Cerberus Capital Management LP, Kimco Realty Corp. and other firms after they purchased 661 stores from the former Albertson’s Inc. earlier this year, agreed to sell its northern California division to Save Mart Supermarkets of Modesto. Save Mart will buy 132 stores in northern California and northern Nevada as well as warehouses in Roseville and Vacaville and the division office in Dublin from Albertson’s. Terms weren’t disclosed. Save Mart will begin operating the new stores by the end of February.
Save Mart, founded in 1952 by Mike Piccinini and Nick Tocco, now has 124 stores. The deal will more than double its size to 256 stores. Bob Piccinini is chairman and CEO. Albertson’s LLC will now operate stores in Dallas/Fort Worth, Texas; Florida; the Rocky Mountain region; and the U.S. Southwest. Save Mart operates under the Save Mart, S-Mart and Food Maxx banners.
The investment firms, Supervalu Inc. (SVU) and CVS Corp. (CVS) acquired Albertson’s Inc. for about $17.4 billion in stock, cash and debt and split the company into three parts.