SUPERVALU INC., Minneapolis, entered into a definitive agreement whereby an affiliate of Onex Corp., Canada, will acquire SUPERVALU’s Save-A-Lot business for $1.365 billion in cash. The sale is expected to be completed by Jan. 31, 2017.

“Today’s announcement is the result of a thorough process to maximize the value of the Save-A-Lot business and best position SUPERVALU for future success,” says Jerry Storch, non-executive chairman of the board for SUPERVALU. “SUPERVALU is successfully executing on its long-term strategic vision and positioning the company for continued growth and value creation. We are confident that this transaction will create exciting opportunities for both SUPERVALU and Save-A-Lot.”

“The sale of Save-A-Lot is another important step in SUPERVALU’s transformation. It provides us with a stronger balance sheet that will allow us to further build on our core strengths and growth opportunities,” says Mark Gross, president and CEO of SUPERVALU. “It has been a pleasure to work with the Save-A-Lot team, and once this transaction is completed, I look forward to continuing to work with them as one of our largest professional services customers.”

Under the terms of the agreement, SUPERVALU will provide Save-A-Lot with certain services and support functions for its day-to-day operations, including cloud services, merchandising technology, payroll, finance and other technology and hosting services.