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Supervalu Will Keep Some Albertsons Executives When it Acquires the Company
May 9, 2006 · Wire Services
Three Boise-based Albertsons Inc. executives will stay on as part of Supervalu Inc.'s top management team, but Supervalu isn't saying whether the executives will stay in Boise - and the company still hasn't specified how big a corporate staff it will keep here after Supervalu acquires part of Albertsons.
Supervalu, a Minnesota-based grocery chain, said Monday that it has chosen a mix of Albertsons Inc. and Supervalu executives to lead the new company after it acquires part of Albertsons, a deal that will likely close in June.
Albertsons and Supervalu shareholders will vote May 30 on the pending sale of Albertsons to a buyout group led by Supervalu. If the deal is approved, Supervalu will take over all Albertsons stores in Idaho and others throughout the West.
None of Albertsons' five highest-paid executives will become a part of the new company.
"All of these appointments will become effective upon close of the acquisition, which is scheduled for June. At that time, Larry Johnston, Bob Dunst, Paul Gannon, John Sims and Felicia Thornton will have completed their responsibilities to the company," said Haley Meyer, a Supervalu spokeswoman. "Supervalu is grateful to these Albertsons executives for their hard work to bring this transaction to successful completion and their role in the transition process."
Johnston is the president, chairman and chief executive officer; Dunst is the executive vice president of technology and supply chain and the chief technology officer; Gannon is the executive vice president for marketing and food operations; Sims is the executive vice president and general counsel; Felicia Thornton is the executive vice president and chief financial officer.
Neither Albertsons nor Supervalu officials would comment on how many other Albertsons employees would stay on at Albertsons' Boise headquarters.
"This is the first level of management that has been named," Meyer said. "Everything else is still being worked out."
Three Albertsons executives will become part of the new Supervalu after the acquisition:
· Pete Van Helden, chief executive of California food for Albertsons, will become Supervalu's senior vice president and president of retail for the West, responsible for retail operations in Southern California, Nevada and the Intermountain West division. o Duncan Mac Naughton, executive vice president of merchandising for Albertsons, will oversee a new marketing program for Supervalu as an executive vice president.
· Kevin Tripp, executive vice president of Albertsons' drug-store division, will become executive vice president and president of retail for the Midwest. He will oversee Cub Foods, Hornbacher's, Jewel and Shop 'n Save, and the company's pharmacy operations.
Two other Albertsons executives - Roe Cefalo, Albertsons executive vice president of real estate development and new store formats, and Kathy Herbert, Albertsons executive vice president of human resources - will advise the new Supervalu company during the transition period. But these two executives will not be part of Supervalu's new management team. "Today's announcement marks a very significant milestone for us," Supervalu Chairman and Chief Executive Officer Jeff Noddle said in a statement. He will remain the head of Supervalu after the acquisition.
"We are moving quickly to ensure that the new Supervalu will be a focused organization with a best-in-class management team to capitalize on the enormous opportunity presented by the combination of these two great companies," Noddle said. "This team reflects the best combination of strengths needed to make Supervalu successful."
Supervalu also tapped several of its own executives to be part of the new management team:
· Mike Jackson, president and chief operating officer, will oversee Save-A-Lot, supply-chain services and the enterprise office.
· Pamela Knous, chief financial officer, will oversee finance, information technology and investor relations. Bristol Farms stores also will report to Knous.
· John Hooley, executive vice president and president of retail east, will oversee retail operations at Acme, Shaw's and several Supervalu store chains, including Bigg's, Farm Fresh, Scott's and Shoppers.
· David Boehnen, executive vice president, will oversee legal, real estate, corporate development and government affairs.
· Dave Pylipow, senior vice president of human resources, will oversee human resources and labor relations.
Cerberus Capital Management, a private investment firm that is leading the group of private investors taking over Albertsons stores in the Dallas/Fort Worth, Northern California, Florida, Rocky Mountains and the Southwest divisions, named its management team earlier this year. The team will be led by Robert G. Miller, former chairman and CEO of Fred Meyer Inc., and it includes seven former Albertsons executives.