Blackwells Capital Activist Presentation Deck
CASE STUDY- SUPERVALU
ā
ā
Overview
Blackwells initiated its investment in Supervalu based on the premise that
its share price did not reflect the strategic value of its 17mm square feet of
wholesale distribution real estate
Management missteps, poor financial performance and a declining stock
price led Blackwells to engage management to improve shareholder
returns
Blackwells crafted a 4-step strategy to improve shareholder value, which
included strategic alternatives, and proposed a refreshment of the
Supervalu Board
In private meetings with Supervalu's C-Suite and through its February
presentation Blackwells illustrated the attractiveness of putting
Supervalu up for sale, specifically demonstrating the returns of selling
the company to United National Foods (UNFI)
Supervalu was acquired by United National Foods on July 26, 2018,
realizing a gain of 67% on the day of and a +128% return for
shareholders since we first engaged
Blackwells Value Creation
$14.80
Current
BW
$23 - $27
$21 $23 +55% to +80%
+40% to +55%
$42 - $45
+180% to +200%
$33- $35
+120% to +135%
BLACKWELLS CAPITAL
1
Strategic Sale-Leaseback Retail Spin-Off Wholesale M&A
Initiatives
Strictly Confidential & Trade Secret
Date
Jun - 17
Aug - 17
Oct - 17
Feb 18
Mar - 18
Mar - 18
Apr - 18
Jun - 18
Event
Jun - 18
SUPERVALU
Timeline
Blackwells begins initial investment in Supervalu
Blackwells met with Supervalu to discuss shareholder concerns
Blackwells sends initial letter to Supervalu Board
Blackwells publishes 79-page presentation illustrating how to
create shareholder value at Supervalu and UNFI as a potential
acquirer of Supervalu
Supervalu sells 21 of its 38 Farm Fresh supermarket stores
Blackwells nominates 6 candidates to SVU Board
Supervalu announces $483mm sale-leaseback transaction
Blackwells publishes 175-page presentation detailing need for
change in Supervalu Board
Supervalu announces sale of company to UNFI for $32.50 per
share in cash (+67% premium)
Total Shareholder Return - TSR (%)
TSR Prior to Blackwells
1-Year
3-Year
+18%
+37%
+10%
+29%
+6%
+18%
(24%)
(17%)
Supervalu
(47%)
(80%)
a) As of February 5, 2018, day prior to Blackwells' release of presentation titled "Save Supervalu".
S&P 500
Russell 2000
Proxy Peers
Grocer Peers
TSR After
Blackwells'
Engagement (a)
+6%
+4%
(12%)
+11%
+128%
102View entire presentation