PROVIDENCE, R.I., Nov. 30, 2018 /PRNewswire/ -- United Natural Foods, Inc. (Nasdaq: UNFI), today announced that its newly acquired subsidiary, SUPERVALU INC., has entered into a definitive agreement whereby Coborn's Inc. will acquire seven Hornbacher's locations, as well as Hornbacher's newest store currently under development in West Fargo, N.D.
"The sale of Hornbacher's to Coborn's is an ideal outcome for our associates and the Fargo-Moorhead community," said Sean Griffin, SUPERVALU CEO. "As we previously discussed, our strategy is to focus on the wholesale business going forward, so finding a strategic buyer for Hornbacher's with continued supply opportunity was a top priority. Coborn's is a long-standing SUPERVALU wholesale customer and we're excited that they will carry on the Hornbacher's name and tradition of quality products and service."
The transaction is currently expected to close before Dec. 25, 2018, subject to customary closing conditions. As part of the sale, Coborn's plans to retain the Hornbacher's name and will enter into a long-term agreement for SUPERVALU to serve as the primary supplier of the Hornbacher's locations. As well, SUPERVALU will enter into an expanded supply relationship with Coborn's. Both of these supply agreements will include minimum purchase requirements.
"We appreciate the tremendous service of our associates and their unwavering dedication to our customers through the years," said Anne Dament, SUPERVALU EVP, Retail, Marketing and Private Brands. "I know the store teams and staff will do an amazing job supporting Coborn's and continuing to make Hornbacher's a popular choice for the local community going forward."
Hornbacher's first opened as Ted's SUPERVALU in Moorhead, Minn. by Ted Hornbacher in 1951. SUPERVALU acquired the banner in 1975, which now operates 8 locations in the Fargo-Moorhead area and Grand Forks, N.D. Throughout its history, Hornbacher's has driven to have the highest quality and freshest perishable products as well as to be an active part of the Fargo-Moorhead community through support of many civic, educational, arts and non-profit organizations.
The Hornbacher's store in Grand Forks, N.D. is not included in the sale to Coborn's and will close. Liquidation will begin at the store on Monday, Dec. 3 and will close as the inventory liquidation is complete.
About United Natural Foods, Inc.
UNFI delivers better food choices to people throughout the United States and Canada. UNFI distributes over 110,000 products to more than 40,000 customer locations including natural product superstores, independent retailers, conventional supermarket chains, ecommerce retailers, and food service customers. Recognized as one of the most effectively managed U.S. companies, UNFI was named in the "Management Top 250" list by the Wall Street Journal in 2017. To learn more about how UNFI is Moving Food Forward, visit www.unfi.com.
NOTE: On October 22, 2018, UNFI completed the acquisition of SUPERVALU INC. For more information on the acquisition, please visit www.bettertogether.unfi.com.
SOURCE United Natural Foods, Inc.