-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, IA5HjTeVKgJiCZ3JwF+DRJG78LDf6WJt/MB4zcuta7mTeiMzO7IuE7REMFQ0Eozw 96MfCC/NlGTjFscJGQY4hg== 0001157523-07-001576.txt : 20070214 0001157523-07-001576.hdr.sgml : 20070214 20070214165426 ACCESSION NUMBER: 0001157523-07-001576 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070208 ITEM INFORMATION: Cost Associated with Exit or Disposal Activities ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070214 DATE AS OF CHANGE: 20070214 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SUPERVALU INC CENTRAL INDEX KEY: 0000095521 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-GROCERIES & RELATED PRODUCTS [5140] IRS NUMBER: 410617000 STATE OF INCORPORATION: DE FISCAL YEAR END: 0225 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-05418 FILM NUMBER: 07622015 BUSINESS ADDRESS: STREET 1: 11840 VALLEY VIEW RD CITY: EDEN PRAIRIE STATE: MN ZIP: 55344 BUSINESS PHONE: 9528284000 MAIL ADDRESS: STREET 1: 11840 VALLEY VIEW ROAD CITY: EDEN PRAIRIE STATE: MN ZIP: 55344 FORMER COMPANY: FORMER CONFORMED NAME: SUPER VALU STORES INC DATE OF NAME CHANGE: 19920703 8-K 1 a5334925.txt SUPERVALU INC. 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): February 8, 2007 SUPERVALU INC. -------------- (Exact name of registrant as specified in its charter) Delaware 1-5418 41-0617000 - -------------------------------------------------------------------------------- (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 11840 Valley View Road Eden Prairie, Minnesota 55344 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (952) 828-4000 -------------- --------------------------------------------------------------------- (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.05 Costs Associated with Exit or Disposal Activities. On February 8, 2007, the Board of Directors of SUPERVALU INC. (the "Company") approved a plan to exit and consolidate the Company's warehouse facilities in Easton, Pennsylvania, Harrisburg, Pennsylvania, and Perryman, Maryland into the Company's warehouse facility in Denver, Pennsylvania, which is also known as its Lancaster facility. The plan was publicly announced by the Company in its news release dated February 14, 2007, a copy of which is attached as Exhibit 99.1 to this report. The Company's preliminary estimate of the after-tax charge to be incurred in connection with the consolidation of the warehouses is approximately $30 to $35 million, which includes approximately $23 to $26 million for lease exit costs. In addition, the charge includes severance and other employee related costs. The Company expects to recognize after-tax charge of approximately $5 million in fiscal 2007, approximately $21 to $24 million in fiscal 2008, and approximately $4 to $6 million thereafter. The charge is primarily cash. The Company expects the plan will take approximately three years to complete. During this time, customers will be serviced from existing facilities while the Lancaster facility is modified, which will include system standardization and technology installation and testing. Item 9.01 Financial Statements and Exhibits. (c) Exhibits. News Release of SUPERVALU INC., dated February 14, 2007, is attached hereto as Exhibit 99.1. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. SUPERVALU INC. ------------------------------- (Registrant) Date: February 14, 2007 By: /s/ Burt M. Fealing ---------------------------------- Burt M. Fealing Corporate Secretary (Authorized Officer of Registrant) EXHIBIT INDEX Exhibit Description of Exhibit - ------- ---------------------- 99.1 News Release of SUPERVALU INC., dated February 14, 2007 EX-99.1 2 a5334925ex99-1.txt EXHIBIT 99.1 Exhibit 99.1 SUPERVALU Announces Consolidation of Logistics Network in the Eastern Region Company Also Announces New Site for Supply Chain Automation Technology MINNEAPOLIS--(BUSINESS WIRE)--Feb. 14, 2007--SUPERVALU (NYSE:SVU) announced today that it will enhance its logistics network in the eastern United States by consolidating distribution centers. The company will merge its Easton, Pa., Harrisburg, Pa., and Perryman, Md., operations into its Lancaster, Pa. facility. In conjunction with this effort, the company has identified the Lancaster distribution center as the newest location for automated technology. By consolidating warehouse volume and incorporating automation technology into the seven year old, 1.4 million-square-foot Lancaster facility, the company will be positioned to optimize its distribution network and leverage technology for improved efficiencies. "Our overall vision is to deliver the best supply chain services to our corporate and independent retailers. This project enhances our commitment toward that vision. Leveraging the efficiencies of the combined company is one of the inherent benefits of our expanded network," said Janel Haugarth, SUPERVALU executive vice president, and president and chief operating officer of the company's Supply Chain Services group. As a result of this consolidation, the company expects to incur total after-tax charges over three years in the range of $30 to $35 million. Included in this estimate is approximately $23 to $26 million for lease exit costs related to the leased property as well as severance and other employee related costs. The company expects to recognize after-tax charges of approximately $5 million in fiscal 2007, approximately $21 to $24 million in fiscal 2008 and approximately $4 to $6 million thereafter. These charges are components of the previously disclosed total one-time transaction costs associated with the acquisition of Albertson's retail properties. Start-up costs associated with implementing the supply chain automation technology are expected to be minimal in fiscal 2008 and are not included in the one-time transaction costs. Capital costs associated with the technology installation are included in SUPERVALU's total $1.2 billion fiscal 2008 capital program. SUPERVALU expects the entire project will take approximately three years to complete. During this time, customers will be serviced from existing facilities while the Lancaster facility is modified, which will include system standardization and technology installation and testing. Commenting on this important initiative, Jeff Noddle, SUPERVALU chairman and chief executive officer, said "One of our publicly stated milestones of the acquisition is to optimize our expanded supply chain infrastructure. The decision to combine the consolidation with the installation of the supply chain automation technology represents an additional opportunity to deliver long-term strategic benefits. Supply chain optimization is a component of our overall synergy range identified with the acquisition. We still expect our total synergies of $150 to $175 million pretax, to be at their full run rate by the end of the third full year following the acquisition or fiscal 2010." ABOUT SUPERVALU SUPERVALU INC. is one of the largest companies in the United States grocery channel with annual sales approaching $40 billion. SUPERVALU holds leading market share positions across the U.S. with its approximately 2,500 retail grocery locations. Through SUPERVALU's nationwide supply chain network, the company provides distribution and related logistics support services to more than 5,000 grocery endpoints across the country. SUPERVALU currently has approximately 200,000 employees. For more information about SUPERVALU visit www.supervalu.com. CONTACT: SUPERVALU INC. Investor Relations and Financial Media: Yolanda Scharton, 952-828-4540 Yolanda.scharton@supervalu.com or Media: Haley Meyer, 952-828-4786 Haley.meyer@supervalu.com -----END PRIVACY-ENHANCED MESSAGE-----