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Oct 17 (Reuters) - Supervalu Inc said it would sell its Save-A-Lot business to Canadian private equity firm Onex Corp for $1.37 billion, more than a year after saying it was considering a spinoff of the discount grocery chain.
Supervalu will enter into a five-year agreement to provide Save-A-Lot with certain services and support functions for its day-to-day operations as part of the deal, the company said on Monday.
Supervalu said it expects to use proceeds from the sale to prepay at least $750 million of debt. (Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by Sriraj Kalluvila)