By George Anderson
Reuters reports Supervalu has reached an agreement to purchase assets of Fleming from C&S Wholesalers, pending that company receiving approval from a bankruptcy court to buy Fleming's wholesale grocery business.
Supervalu would take over Fleming's operations in La Crosse and Milwaukee, Wisconsin as well as its business in Massillon, Ohio. Included in the deal would be Supervalu taking ownership of the Festival Foods and Sentry Foods trade names. Supevalu's purchases would also include controlling Jubilee Foods' licensing rights in some markets.
Jeff Noddle, chairman and chief executive officer, Supervalu said the deal would give his company a "unique opportunity to leverage our distribution network in the Midwest."
Moderator's Comment: What will the grocery wholesale scene in the US look like after C&S receives the necessary approval from the bankruptcy court to acquire Fleming's business?
It would appear that the C&S strategy, based on this deal and others announced, is to quickly sell-off Fleming assets it doesn't consider vital. This will allow it to recoup costs of the purchase and put some money in its coffers to support its regional activity. [George Anderson - Moderator]