United Natural Foods Inc. (UNFI) and SUPERVALU INC. recently announced that they have entered into a definitive agreement under which UNFI will acquire SUPERVALU for $32.50 per share in cash, or approximately $2.9 billion, including the assumption of outstanding debt and liabilities.

"This transaction accelerates UNFI's ‘Build out the Store’ growth strategy by immediately enhancing our product range, equipping us to bring an attractive, comprehensive product portfolio to an expanded universe of customers," UNFI chief executive officer and chairman Steve Spinner said. "Combining our leading position in natural and organic foods with SUPERVALU's presence in fast-turning products makes us the partner of choice for a broader range of customers. Together, we can provide our ‘better for you’ products as well as other high-growth segments, improving customers' competitive advantages in a dynamic marketplace. These benefits, plus our increased efficiency and productivity, will enable us to create value for our shareholders, enhance opportunities for our suppliers, provide a broader assortment for our customers and create new prospects for our associates over the long term."

Mark Gross, CEO of SUPERVALU, added, "The combination of UNFI and SUPERVALU provides a substantial premium and delivers certainty of value to our stockholders, meaningful benefits to our customers, expanded opportunities for our employees and the ability for us and our vendors to efficiently serve a varied customer base. We have been executing an ambitious strategic transformation for over two years. We believe that this transaction is the best and natural next step for our stockholders, customers and employees.”

Spinner will lead the combined entity, while UNFI chief operating officer Sean Griffin will lead the SUPERVALU integration efforts post-close and lead an integration committee comprised of executives from both companies to drive the implementation of best practices from each company and the delivery of important synergies as well as a rapid and smooth integration.

The transaction has been approved by the boards of directors of both companies and is subject to antitrust approvals, SUPERVALU shareholder approval and other customary closing conditions. It is expected to close in the fourth quarter of 2018.