Supervalu to sell Save-A-Lot chain for $1.37 billion

Supervalu says it is selling its Save-A-Lot supermarket chain for $1.37 billion to Canadian private equity firm Onex Corp.

The deal is expected to close before the end of January.

Supervalu, based in Eden Prairie, Minnesota, distributes grocery items to supermarkets and provides other services to them. The company also owns the Shop ‘N Save and Cub Foods chains.

There are more than 1,300 Save-A-Lot grocery stores around the U.S., including 10 in the Charlotte metro area, according to its website.

Supervalu first announced plans to sell off Save-A-Lot last year to focus on growing its distribution business. Supervalu says it signed a five-year deal with Save-A-Lot to provide cloud technology, as well as payroll, finance and merchandising technology services.

Shares of Supervalu Inc. jumped 8 percent to $5.41 before the stock market opened Monday. The Observer contributed.

This story was originally published October 17, 2016 at 8:56 AM with the headline "Supervalu to sell Save-A-Lot chain for $1.37 billion."