Salt Lake-based American Stores Co. said it will sell its 33 Star Market grocery outlets to an international investment group for $285 million in cash and assumption of Star Market's outstanding liabilities.
The transaction with the group, formed by the international investment bank Investcorp, should be closed by early next month, said Victor Lund, president of American Stores.The Star Market division is based in Cambridge, Mass. The division reports annual revenues of about $840 million.
"Although the Star Market operations have made a valuable contribution to our company's overall financial success, we believe that our long-term interests are best served by focusing on the operations where we have significant market positions," Lund said.
"The net cash proceeds from the sale will initially reduce debt and, in the longer term, be redeployed to our remaining businesses."