Private equity firm Cerberus Capital Management LP is nearing an agreement to buy parts of Supervalu Inc (SVU.N) and an announcement could come as early as next week, a person familiar with the matter said on Friday.
The Minneapolis, Minnesota-based grocer has been closing stores and cutting costs to reverse losses and cut debt. It suspended its dividend in July to fund aggressive price cuts and it also put itself up for sale.
Cerberus and its partners plan to buy some Supervalu assets and take a stake in the remaining public company after banks balked at financing a deal for all of the third-largest U.S. supermarket operator on the proposed terms, the person said. The person spoke on condition of anonymity because negotiations are confidential.
A Supervalu spokesman said on Friday the company's review of strategic alternatives was proceeding and that it was in "active discussions with several parties." He declined to comment further.
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