The company that was founded in 1999, has annual revenues of about $75 million. The stores have a footprint of about 9,000 sf.
Jeff Noddle, SuperValu president and chief executive officer, says the deal is the culmination of a year-long effort to develop a general merchandise strategy to support the next phase of expansion its Save-A-Lot retail chain. Bill Moran, chief executive officer of Save-A-Lot, says his team is working on a new Save-A-Lot prototype that represents a combination store of grocery and general merchandise.
Over the course of the next few years, it is expected that Save-A-Lot will retrofit its store network to include more general merchandise.
The Deal$ acquisition accelerates Save-A-Lot's store expansion plans, which had plans to add about 150 stores this fiscal year as compared to about 100 last fiscal year.
Terms of the deal were not disclosed.
The acquisition, which is expected to close in May, comes as Minneapolis-based SuperValu recently opened its 1,000th Save-A-Lot store. Save-A-Lot, with system-wide sales in excess of $4 billion and stores in 36 states, is the No. 1 extreme value groceryretailer in the United States. SuperValu also owns a chain of grocery stores, and is one of the nation's largest food wholesalers.
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