Last updated on March 25th, 2021
Supervalu Inc. has released an investor presentation in connection with the company’s upcoming annual meeting of stockholders, to be held on Aug. 16.
The presentation highlights Supervalu’s transformation plan, its efforts to position the company for success in an evolving market, and its management team’s qualifications.
Supervalu’s transformation plan ‘well under way and delivering results’
For more than two years, Supervalu has been transforming its business to become a wholesale company of choice focused on distribution across the U.S. The company has added $5 billion in run-rate sales to grow its core wholesale business, which now represents 80 percent of total company sales, up from 44 percent in 2016.
“Supervalu continues to optimize its asset base through the sale of a majority of its Farm Fresh stores and its minority interest in a number of franchised Cub Foods stores, and is pursuing the sale of its Shop ‘n Save and Shop ‘n Save East retail operations,” the company said in a statement, adding that the proceeds from the company’s $1.3 billion sale of Save-A-Lot in late 2016 and the approximately $445 million in net proceeds from distribution center sale and leaseback transactions earlier this year are “strengthening the company’s balance sheet by reducing debt and increasing the company’s flexibility to execute its wholesale growth strategy.”
Best positioning Supervalu in an evolving industry
Supervalu says it continues to be well positioned for future wholesale growth and to benefit from further industry consolidation. It has appointed new leadership in wholesale and retail to prioritize driving operational excellence and better align retail initiatives with wholesale operations.
The company has proposed a reorganization of its corporate structure into a holding company to further segregate the wholesale and retail operations and “more efficiently and effectively advance the company’s other transformation initiatives, as well as potentially generate significant cash tax benefits of approximately $300 million over the course of the next approximately 15 years.”
Supervalu board and management ‘have the right experience’
As Supervalu faces a slate of board nominations from activist investor Blackwells Capital, it is assuring its investors that its board is independent and highly qualified, with significant C-suite, public board, M&A, financial, distribution and retail experience.
“The board has demonstrated a strong commitment to refreshment to ensure it has the right mix of diversity, independence and experience to best address the evolving needs of the grocery industry and position Supervalu for future success,” the company says. “CEO Mark Gross and Mary Winston joined the board in 2016, both bringing strong backgrounds in grocery retail and distribution, finance and M&A, which make them critically valuable as the Company continues its ongoing strategic transformation.”
Supervalu’s directors with financial and accounting backgrounds include Don Chappel, Irwin Cohen, Mark Gross, Mathew Pendo, Frank Savage, Mary Winston and Francesca Ruiz de Luzuriaga.
“Under their leadership and guidance, the company has significantly reduced its debt, improved its balance sheet, and increased its flexibility to pursue strategic capital investments to drive wholesale growth,” says Supervalu.
The company also is encouraging its stockholders, once again, not to vote for Blackwells’ nominees.
“Transformation is already underway at Supervalu, and the Board and management team have been taking bold steps since long before Blackwells purchased a single share of Supervalu,” the company says. “Additionally, Blackwells’ director nominees would not bring new or additive expertise to the board, and are not necessary to ensure the continued execution of the company’s initiatives to create stockholder value.
Further, by attempting to replace six of nine board members, Blackwells is trying to effectively seize control of Supervalu without paying a premium to all stockholders, and is seeking a level of representation dramatically disproportionate to its purported ownership in the company.”
The presentation and other information related to the annual meeting can be found on Supervalu’s website at http://www.supervaluinvestors.com.
Keep reading:
Supervalu Letter Urges Stockholders Not To Vote For Blackwell Nominees
Blackwells Capital Nominates Six For Supervalu Board Of Directors
