It has all been part of the retailer’s rebound strategy, which includes running 14 wholesale grocery warehouses to serve its 33-state footprint. The short time between its purchase of Save-A-Lot and this most recent announcement suggests that new owner Onex thought this was a bad idea. We thank our vendors and retail partners for their trust and support throughout this process and we look forward to continuing to work closely with them into the future.”, McGrath continued, “As our nation is impacted by the COVID-19 pandemic, I cannot say enough about the strength and resilience of our retail partners and our team members. Beleaguered discount grocery chain Save-A-Lot may be on the verge of major changes. Save-A-Lot Investment Date December 2016 - April 2020. Laces Group. The local stores will still run under the Save A Lot name as the parent company embraces a franchisee strategy. Onex Partners. During Onex' investment period, Save-A-Lot was one of the largest hard-discount grocery retailers for value-seeking shoppers in the United States. Kroger, which does not franchise out stores, still has several store brands under its company umbrella. Onex Partners IV made an equity investment of million, of which Onex’ $660 share was $186 million as a limited partner in the Fund. Save A Lot has sold all 51 of its corporate-owned Tampa Bay stores to another another company as the discount grocer shifts to a wholesale business model. Save a Lot Grocery Stores Near Me Due to increased demand, we may be limiting the number of certain products per customer. Save A Lot currently operates more than 1,100 discount grocery stores in 33 states. Save-A-Lot is one of the largest discount grocers in the U.S, with corporate-owned and independent stores in 36 states, according to its website. On Aug. 8, Onex reported that Save-A-Lot’s trailing 12-month adjusted Ebitda slumped to $35 million, about half the $70 million reported in the previous quarter. Onex Corp., the Canadian equity firm that once had a majority stake in Save A Lot, announced in April that it cut the grocer’s debt by $500 million and brought in $350 million in … NEW YORK -- Shares of Supervalu were spiking 9.78% to $5.50 in pre-market trading on Monday after the company agreed to sell its Save-A-Lot business to … Save-a-Lot, which recently lowered prices as part of a brand makeover and laid off staff in its corporate office, has about 1,230 stores and is the second-largest hard discount grocery chain in Save A Lot’s acquisition was funded by $660 million in equity between Onex and its associated Onex IV fund, and by a $728 million term loan against the company. As of December 31, 2020, Onex had approximately US$44 billion of assets under management. Editor’s note: This story has been updated to reflect that Onex Corp is no longer a majority investor of Save A Lot. Founded in 1977 in Cahokia, Illinois, Save A Lot had grown to operate roughly 1,000 stores across the U.S. This discount grocery chain, which was acquired from SuperValu by Onex Corp., a Canadian private-equity firm, back in 2016, is feeling the sting from rivals such as Aldi, Kroger, Walmart, and Amazon. The chain’s plan is to have all 300 of its existing corporate-owned locations under the new model in 2021. More than half of Save A Lot’s roughly 1,000 locations were already operating under licensing agreements with deals to carry the chain’s private label products. About Onex Onex … The chain announced that it has hired Kenneth McGrath, former CEO of Lidl Ireland and Lidl USA, to lead its business. “Over the past several months I have toured stores in the greater Tampa market and I’m impressed with the Save A Lot team,” Fresh Encounters CEO Michael Needler, Jr. said in a statement. “The wholesale model in the grocery business has been successful for Kroger,” said Mark Thompson, grocery expert and owner of real estate tracking website GroceryAnchored.com. A company spokeswoman confirmed that Onex no longer owns Save A Lot. The St. Ann, MO-based value-added merchant, which was acquired in late 2016 by Canadian private equity firm Onex Corp. from Supervalu for $1.4 billion in cash, has done a pretty good job of irritating many of its licensees which control about 70 percent the retailer’s approximately 1,280 locations … Onex had acquired Save A Lot in December 2016 for about $1.4 billion from Supervalu Inc. Now part of United Natural Foods Inc., Supervalu had previously explored a spinoff of Save A Lot. “With the completion of this recapitalization, we are moving forward with a substantially stronger financial foundation as we continue serving our customers and executing our transformation plan,” said Kenneth McGrath, CEO of Save A Lot. The only exception will be 21 corporate St. Louis stores that will serve as the corporation’s test market for new products. This Save A Lot grocery store opened in the West Tampa community on the corner of N Armenia and W Dr. Martin Luther King Jr. Boulevard in 2019.. News of the potential exit comes as Save-A-Lot seeks a turnaround under a new management headed by former Lidl U.S. CEO Kenneth McGrath, who took over following Onex’s $1.4 billion acquisition of the company from Supervalu in 2016. Save-A-Lot. On April 3, Save A Lot announced that it has successfully completed a comprehensive recapitalization of its business and significant deleveraging of the company’s balance sheet. Going to the mall in Tampa? McGrath will be taking over from Eric Claus, Save-A-Lot’s current CEO, whose departure the retailer and its controlling shareholder, Onex, described as a mutually agreed-upon parting. We appreciate your understanding as we … Retail, Tourism and Workplace Culture Reporter. A smaller-scale operator can more easily adjust product assortment to the meet the demands of the neighborhoods it serves. Onex’ $6.8 billion of Capital at December 31, 2017 Onex Capital At December 31, 2018, Onex’ $6.4 billion of capital was primarily invested in or committed to its private equity and credit platforms. 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At that time, his was the only privately owned Save-A-Lot in Citrus County. Save A Lot looks at that as a really nice marriage.”. Then Save A Lot approached in 2016 with an opportunity to return to the grocery business. Under the terms of the new agreement, which the company said was supported unanimously by all constituents, Save A Lot has completed debt-for-equity and debt-for-debt exchanges that eliminated approximately $500 million in debt and provided an infusion of $350 million in new capital from a combination of new and existing lenders to support the company’s operations and acceleration of its transformation plan. Laces Group Onex Corporation ("Onex") (OCX.TO) today announced it has agreed to acquire the Save-A-Lot business ("Save-A-Lot") from SUPERVALU INC. ("SUPERVALU") for $1.365 billion. sgsco. We are proud to offer fresh meat, quality produce and all of your grocery needs. “I am truly humbled to be joining them in delighting our customers, nourishing the communities and inspiring pride in the team.”. And to be sure, the areas where Save-A-Lot sought to grow, particularly Southern California, are already saturated with competitors, including long-time operators like Ralph’s, Safeway and Trader Joe’s. Onex Out As Save A Lot Recapitalizes Debt Onex Corporation, the Toronto-based private equity firm that acquired discount grocer Save A Lot from Supervalu in 2016, has apparently shed its investment in the St. Louis area retailer. Save-A-Lot is positioned to be Supervalu, Eden Prairie, Minn., completed its sale of Save-A-Lot to an affiliate of Onex Corp. for $1.365 billion in cash Monday. Save-A-Lot stores serve more than five million shoppers each week and offer customers savings of 30% or more compared to traditional grocery stores. Save-A-Lot is one of the largest hard-discount grocery retailers for value-seeking shoppers in the United States. The retailers announced the sale this week as part of Save A Lot’s broader plan to franchise out nearly all of its corporate-owned stores. It is a subsidiary of Onex Corporation and has about 1, Save A Lot is your community discount grocery store. "Save-A-Lot provides its customers with measurable savings and is differentiated among its competitors in a growing segment of the industry," said Matt Ross, a Managing Director with Onex. Onex Corporation is an investment manager founded in 1984. Investment Date October 2012 - Present. More specifically, that would be Kenneth McGrath, former CEO of Lidl, Aldi's main competitor in the European market. The firm manages capital on behalf of Onex shareholders, institutional investors and high net worth clients around the world. These incredible people are on the front lines every day, and we thank them for their unwavering dedication to serving our customers and helping our communities manage through this unprecedented situation. Since joining Onex, Adina has worked on Onex Partners’ acquisitions of ASM Global (formerly SMG), Save-A-Lot and Emerald Expositions, as well as its subsequent acquisition of GLM. Former Lidl executive Kenneth McGrath has been tapped to lead Save-A-Lot as its new CEO, effective April 21. We understand the critical role our company plays as our communities rely on us now more than ever to provide food and other essential, high quality products at low prices.”, Seafood Expo North America/Seafood Processing North America COVID-19 Update, IGA Chairman Emeritus Dr. Tom Haggai Passes Away At 89. Krasdale Foods, a New York grocery operator, is a food and branding supplier to the independently owned Bravo locations. In hiring Mr. McGrath, Save-A-Lot gets a leader with 13 years of executive experience at Lidl. Thompson said Save-A-Lot’s model could work well in Tampa’s diverse communities. If you are unhappy with the freshness or quality of one of our items, we will replace the item or provide a refund. In the year ended December 31, 2018, Onex capital per share decreased by 5% (3% increase in Canadian dollars). While the news release did not mention Onex’s departure as primary owner, the Canadian firm’s website lists Save A Lot as a “past” investment. All of them stock its private label goods, sales of which exceeded $2 billion last year. Hispanic grocer Bravo Supermarkets, which started expanding its local foot print last year, already runs under a similar model. She remains actively involved with these businesses and focuses on new investment … Save A Lot did not disclose who its new lenders are or any specifics of its transformation plan. Hundreds of people attended the store’s grand opening in August 2017. The discount grocer announced the business model shift earlier this year as it worked to shed millions in debt. During Onex' investment period, Save-A-Lot was one of the largest hard-discount grocery retailers for value-seeking shoppers in the United States. “We currently have a dedicated group of retail partners that we support and we look forward to helping other entrepreneurs own, operate and succeed in their own business.”. Investment Date December 2016 - April 2020. During Onex' investment period, Save-A-Lot was one of the largest hard-discount grocery retailers for value-seeking shoppers in the United States. Onex Corp., the Canadian equity firm that once had a majority stake in Save A Lot, announced in April that it cut the grocer’s debt by $500 million and brought in $350 million in investments. Counting the Tampa sale, 82 former corporate stores have already transferred over to the new model this year. Save-A-Lot is a hard-discount grocery retailer in the U.S. Onex Partners IV made an equity investment of $660 million, of which Onex’ share was $186 million as a limited partner in the Fund. Onex purchased the chain from Supervalu for $1.4 billion in 2016. Onex Corporation, the Toronto-based private equity firm that acquired discount grocer Save A Lot from Supervalu in 2016, has apparently shed its investment in the St. Louis area retailer. “Our ability to achieve this outcome through a fully consensual and out-of-court agreement is a significant achievement and reflects the confidence of our new owners and lenders in our business model and long-term growth prospects. Seepersaud put $700,000 of his own money into opening a new Save-A-Lot at Homosassa Square, at the corner of U.S. 19 and West Yulee Drive. “Through the re-licensing transactions we are executing across our footprint, we believe that we will be even better positioned to continue to serve the communities in which we operate,” Save A Lot CEO Kenneth McGrath said in a statement. The Tampa Bay stores will still operate under the Save A Lot banner, but are now owned and operated by Ohio grocery company Fresh Encounters, Inc. Fresh Encounters has a licensing and wholesale grocery agreement with Missouri-based Save A Lot. Save-A-Lot may yet be a player in the hard discount grocery market in the U.S. Onex Partners. “This is not lost on companies like Save A Lot, which is empowering local franchisees to customize the units. Save-A-Lot, based in St. Louis, did not immediately respond to requests for comment. 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