Two members - Mark Neporent and Lenard Tessler - stepped down
) board on Mar 6, 2014.
The resignation followed the announcement of the takeover of
) by AB Acquisition LLC, an entity controlled by a Cerberus-led
investor group. During fourth-quarter 2013 earnings release,
Safeway announced that it will merge with Cerberus Capital
Management L.P.'s Albertsons in a deal valued at approximately
$9.0 billion. The deal is expected to close in the fourth quarter
Neporent and Tessler commented that in the light of Safeway
deal, it was in the best interests of the company to leave the
team as a person neutral to Cerberus and Supervalu will be
beneficial. Per the agreement between Supervalu and Cerberus, the
replacement of Tessler and Neporent will be decided by Symphony
They had joined the board when the company's grocery banners
were sold to Cerberus led investing group Symphony Investors LLC
in Mar 2013. As part of broad-based strategic alternatives,
Supervalu sold five of its underperforming grocery chains -
Albertson's, Jewel-Osco, Acme, Shaw's and Star Market - a total
of about 877 stores, to private equity firm Cerberus Capital
Management L.P. Per the agreement, Symphony Investors acquired
5.5% of Supervalu for a total of $46.7 million.
Post the deal, Supervalu reorganized its board and Tessler and
Neporent - two designees of Symphony Investors - were appointed
as Directors. Previously, Tessler was serving as the co-head
global private equity and senior managing director of Cerberus
Capital Management. Prior to joining Cerberus in 2001, Tessler
was the founder and managing partner of private equity firm, TGV
Partners from 1990 to 2001. With three decades of leadership in
private equity and business investment firms, he is a member of
the Cerberus Capital Management Investment Committee.
Prior to joining Supervalu, Neporent served Cerberus Capital
in the capacity of chief operating officer and general counsel.
He has more than 30 years of experience, having served as a
partner in the Business Reorganization/Finance Groups of Schulte
Roth & Zabel LLP.
Currently, Supervalu carries a Zacks Rank #3 (Hold). Some
better-ranked stocks in the food/miscellaneous sector worth
Post Holdings Inc.
Diamond Foods Inc.
). Both the stocks carry a Zacks Rank #2 (Buy).
DIAMOND FOODS (DMND): Free Stock Analysis
POST HOLDINGS (POST): Free Stock Analysis
SUPERVALU INC (SVU): Free Stock Analysis
SAFEWAY INC (SWY): Free Stock Analysis Report
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