EDEN PRAIRIE, MN - The Transition Services Agreement (TSA) Supervalu and Albertsons agreed to as part of the initial sale made in 2013 is winding down, prompting the companies to go into a written agreement to tie it off.

In 2013, Albertsons LLC acquired Acme, Albertsons, Jewel-Osco, and Shaw’s and Star Market banners from Supervalu, for which the TSA was made. 

As it stands, the TSA is currently set to expire in late September of 2016, unless renewed, according to the Form 8-K that was filed with the SEC.

Under the agreements set on Thursday, April 16, Supervalu will receive eight payments of $6.25 million from Albertson’s, totalling in aggregate fees of $50 million. This will be in addition to what Supervalu already receives from the established TSA.

Originally, the TSA filed between the two companies was set to expire on September 21, 2015, with the same parameters of only being extended if both parties filed to do so a year in advance. Albertsons decided to exercise that right as of last September, postponing the expiration and prolonging Supervalu’s transition services.

According to the 8-K Form, Supervalu anticipates that these new agreements will be enough to cover any costs of their providing the transition and wind down services. The current parameters, the form continues, should be enough to offset any future decline in TSA fees from stores and distribution centers being removed in the process of winding down.

Albertsons