United Natural Foods Inc., which has a large distribution warehouse and office facility in Prescott, this week completed its merger with Minnesota-based grocery store chain Supervalu INC. For the first time since 1967, Supervalu is no longer listed on major stock exchanges.
The deal, worth $2.9 billion, will help the company become one of the leading food wholesalers in the U.S. increasing its scale and reach into products such as meat and diversify its grocery business to several markets. The deal also allows the Supervalu chain to stay alive as well.
However, since the merger was announced back in the July, there has been a steady decline in UNFI stock as stock, business and food industry analysts have reportedly been skeptical of it. UNFI reportedly plans to finance much of the costs with debt and new credit but forecasts it will become profitable in the long term.