SuperValu Deal A Sign Of More Supermarket M&A?

Retail M&A has been relatively healthy in recent years. We saw big transactions such as David’s Bridal’s sale by TPG Capital and Leonard Green to Clayton Dubilier & Rice for $1 billion and Party City Holdings, which was flipped last year to Thomas H. Lee Partners for $2.7 billion from a trio of PE firms including Advent International, Berkshire Partners and Weston Presidio.

But supermarkets are the one retail sector that has seen little M&A, until now. Cerberus’ partial buyout of some chains from SuperValu today for $100 million plus billions in debt, is one of the few supermarket deals since 2008.

But more grocery deals are in store—if you’ll pardon the pun. In February, Harris Teeter, the regional North Carolina-based chain, said it hired J.P. Morgan to explore a sale after being approached by a couple of private equity firms.

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