Supervalu Inc. (SVU: Quote) announced, in conjunction with the announcement of its definitive agreement for the sale of five retail grocery banners to a Cerberus-led investment group and the related tender offer to be conducted for up to 30 percent of Supervalu shares, that Sam Duncan would be named President and Chief Executive Officer following the closing of the Transactions. At that time, the Board will grant Duncan stock options to acquire 1.50 million shares of Company common stock with an exercise price equal to the closing price of a share of Company common stock on the New York Stock Exchange on that date.
These stock options will have the same terms and conditions as stock options generally granted during the company's fiscal year ending February 22, 2014 to other executives of the company under the company's 2012 Stock Plan. They will vest in three equal annual installments on each anniversary of the grant date, with accelerated vesting upon the achievement of a per share price of company common stock determined at the time of grant, subject to Duncan's continued employment.
Earlier today, Supervalu said it has agreed to sell five of its retail grocery chains to an investor group led by Cerberus Capital Management L.P. in a transaction valued at $3.3 billion.
Minneapolis, Minnesota-based Supervalu will sell its Albertsons, Acme, Jewel-Osco, Shaw's and Star Market store chains and also related Osco and Sav-on in-store pharmacies to AB Acquisition LLC, an affiliate of the consortium. The deal is expected to close in the first calendar quarter of 2013.
The investor consortium includes Kimco Realty Corp., Klaff Realty LP, Lubert-Adler Partners and Schottenstein Real Estate Group.
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by RTT Staff Writer
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