Grocery giant Supervalu will buy food logistics firm Total Logistics for about $233 million.
The purchase gives Supervalu more coverage in supermarkets and other retail channels via Total Logistics staff, who deliver goods to stores.
Milwaukee-based Total Logistics has 3,000 staffers, mostly in its Total Logistic Control subsidiary, which serves Kraft Foods, Sara Lee, Kellogg and others. Its secondary business, Zero Zone, handles refrigerated and frozen displays.
“We have been looking for the right partner to obtain critical mass and solidify our commitment to third-party logistics and we have found the perfect fit in Total Logistics. … The combination of Supervalu’s scale and supply chain competence together with Total Logistics’ nationally recognized reputation in third-party logistics will unlock new growth opportunities,” said Supervalu CEO Jeff Noddle in a statement.
Stillwater, MN-based Supervalu will assume Total Logistics’ debt of $68 million and buy all its outstanding shares. Total Logistics earned $253 million in revenues for the first nine months of 2004.
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