Supervalu has reached an agreement with Blackwells Capital, less than one week after United Natural Foods announced plans to acquire the wholesaler for $2.9 billion.
The truce means there will be no proxy showdown at the annual shareholders meeting Aug. 16. Blackwells had originally submitted six candidates for the nine-seat Supervalu board of directors. It had pushed for nearly a year for changes in the business, particularly in leadership.
“We are pleased to have reached this agreement with Blackwells, as we may now dedicate our full attention to continuing to operate our business and to completing the transaction with UNFI, which delivers a substantial premium and immediate and certain value to our stockholders,” Supervalu chairman Donald Chappel said in a news release.
As part of the agreement, Blackwells has withdrawn its candidates for the board and its previous materials that urged Supervalu shareholders to oust the current leaders. Blackwells also shut down its Save Supervalu website, where it posted documents including a 179-page presentation to Supervalu shareholders.
That presentation, which Blackwells released days before news of the acquisition, criticized Supervalu for everything from bathroom sanitation at retail locations to the use of a private plane to what it deemed insufficient sustainability efforts. Blackwells also alleged disloyalty by six directors, calling them the “Culpable Six.”
UNFI said when it announced the acquisition that it would divest Supervalu’s remaining retail assets, a process Supervalu had already started. The deal is expected to close by the end of the year.