Roundup: Supervalu deal closer; Bayer gets FTC OK; Upper St. Clair apartments planned; more
Deal for some assets of Supervalu near
An investor group led by Cerberus Capital Management LP is nearing a deal to acquire some of grocery chain Supervalu Inc.'s assets and become a shareholder in the remaining public company, said people familiar with the matter. Cerberus and its real estate partners are willing to put in $500 million in equity to appease lenders that had previously balked on terms Cerberus was seeking. Last month, Supervalu had been moving toward a deal to sell only individual chains such as Albertsons and Save-A-Lot to Cerberus after discussions on a full takeover stalled, people with knowledge of the matter said then. Mike Siemienas, a spokesman for Eden Prairie, Minnesota- based Supervalu, declined to comment, as did Peter Duda, a spokesman for Cerberus. Supervalu supplies Shop n Save, Foodland and other Pittsburgh-area supermarkets and operates a distribution center near New Stanton.
Electrical supplier moves HQ to Cranberry
Advanced Controls and Distribution Inc. has relocated its headquarters to Cranberry after outgrowing its space at 1100 Rico Rd., Monroeville. The company, a full-line distributor of industrial electrical supplies, made the move to 20800 Route 19 as of Jan. 1, after a $ 1 million renovation of the building it purchased from Sterling Lights for $1.1 million. The building, with 14,000 square feet, has 9,000 square feet of office space and 5,000 square feet of warehouse. About 18 employees relocated to the new building which has room for another 10 who could be employed over the next two to three years, he said. A sister company, Premier Automation, has taken over the space in ACD's former building in Monroeville, he said.
Bayer gets FTC approval to buy Teva animal-drug division
Bayer Corp.'s HealthCare unit said it received regulatory clearance to complete its $145 million acquisition of the animal-drug division of Teva Pharmaceutical Industries Ltd. Teva is based in Israel and has several facilities in the Philadelphia region, but the animal-products factory is in St. Joseph, Mo. The factory and about 300 employees will be transfered to Bayer. Bayer Corp., the Robinson based American operations of Bayer AG of Germany, said the Federal Trade Commission had approved the sale. “This acquisition fits nicely with our strategic goals,” Joerg Reinhardt, CEO of Bayer HealthCare, said.
GM recalls nearly 69,000 vehicles worldwide
General Motors is recalling nearly 69,000 pickup trucks, SUVs and vans worldwide because they can roll away unexpectedly. The recall affects certain 2013 models of the Chevrolet Silverado, Suburban, Tahoe, Avalanche and Express. Also included are the GMC Sierra, Savana and Yukon as well as the Cadillac Escalade. GM says the vehicles may have been built with faulty park lock cables or malformed steering column lock gears. The vehicles can be shifted out of park even if the ignition key is in the off position or removed. GM says about one in 1,000 of the vehicles has the problem, and most haven't been sold yet. The company says it knows of no crashes or injuries caused by the problem.
220-unit apartment in Upper St. Clair planned
A local developer wants to build a 220-unit apartment complex in Upper St. Clair but first must get township zoning approval for the project. John Deklewa's Residential Development Construction Inc. filed an application with the township to rezone the property. The site is located at the end of Boyce Plaza Road, where he purchased about 24 acres of vacant land from Fifth Third Bank for $1.2 million. A hearing on the proposal is scheduled Jan. 17 before the township planning commission, said Scott Brilhart, planning director. Following the commission's action, further public hearings will be held by the township commissioners. The plan shows nine buildings, each three-stories to be located on the site.
Other business news
• US Airways said it flew 4.40 million passengers in December, nearly 1 percent more than the 4.37 million it flew a year earlier. The airline also filled more of its passenger seats, a measure of profit the industry calls the “load factor.” US Airways' load factor of 83.1 percent in December was a record for that month, and compared with 81.9 percent the year before. At the same time, the carrier reduced its flight capacity by 0.2 percent over the year.
• First Insight will introduce a new product to help retailers and manufacturers decide how much a new product should cost at the National Retail Federation's annual convention starting Jan. 13 in New York. While businesses “have endless amounts of intelligence on product performance after products hit the stores,” CEO Greg Petro said, the Sewickley-based market research firm's new models give them insight into consumer response beforehand.
— Staff and wire reports