Dow Jones reports this morning that "Cerberus Capital Management LP is eyeing about a half-dozen grocery chains for potential bids, as the buyout shop weighs whether to further expand its grocery business three months after acquiring several chains from Supervalu Inc.(SVU), according to a person familiar with the matter ... The grocery business has long been profitable for Cerberus, and the firm sees adding stores as a way to cut costs through additional scale while creating more turnaround opportunities, one of the people said."
Among the companies said to be in the Cerberus crosshairs: Harris Teeter Supermarkets, which has been exploring a possible sale.
Among the companies said to be in the Cerberus crosshairs: Harris Teeter Supermarkets, which has been exploring a possible sale.
- KC's View:
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Harris Teeter would be a different sort of acquisition for Cerberus; it is a little more up-market than the stores in which it has traditionally invested. And I suspect there will be some competition for Harris Teeter.
But this certainly would be an interesting move for both companies, coming at a time when M&A activity seems to be picking up.
