Roundy’s, Inc. Agrees to Sell 18 Rainbow Stores

Must Read

Roundy’s, Inc., a grocer in the Midwest, has announced entering definitive agreements to sell 18 Rainbow stores in the Minneapolis/St. Paul market to a group of local grocery retailers, including Supervalu.

The aggregate sale price for the 18 Rainbow stores is approximately $65 million in cash plus the proceeds from inventory that will be sold at the closing of the transaction. In addition, as part of the transaction, the buyers will assume the lease obligations and certain multi-employer pension liabilities related to the acquired stores. Roundy’s is actively seeking additional buyers for its remaining 9 Rainbow stores, and at the conclusion of that process expects to either sell or close the remaining stores and fully exit the Minneapolis/St. Paul market.

The transaction is expected to close during the third quarter, subject to satisfaction or waiver of closing conditions in the definitive agreements. The Company expects to use the sale proceeds from the transaction to pay down borrowings under its term loan and asset based revolving credit facility.

Commenting on the sale, Roundy’s Chairman, President, and Chief Executive Officer, Robert A. Mariano said, “The economic downturn over the last few years, coupled with an increased competitive footprint in the Minneapolis/St. Paul Market, has made it difficult for Roundy’s to keep the Rainbow banner competitive. However, we believe the sale of these Rainbow stores to this group of local operators will provide those stores better stewardship in serving their communities in the Minneapolis/St. Paul market going forward. The transaction will also allow us to better focus strategically on growing our Mariano’s banner in the Chicago market and strengthening our business in our core Wisconsin markets.”

Moelis & Company is acting as Roundy’s exclusive financial advisor in connection with the transaction.

Founded in Milwaukee in 1872, Roundy’s operates 169 retail grocery stores and 114 pharmacies under the Pick ’n Save, Rainbow, Copps, Metro Market and Mariano’s retail banners in Wisconsin, Minnesota and Illinois.

spot_img
Latest News

Beverly Hills Polo Club enters Dehradun

Located at Centrio Mall this is Beverly Hills Polo Club’s 12th store in the country New Delhi: Beverly Hills Polo...

More Articles Like This