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DALLAS - Fleming Cos. Inc. on Thursday said it agreed to sell three Rainbow Foods stores in Wisconsin to Roundy's Inc. for an undisclosed sum. Dallas-based Fleming also said it is in advanced talks to sell eight other Rainbow Foods stores in Wisconsin.
The latest deal is part of Fleming's planned divestiture of its supermarket division, which until recently had been a drag on its financial performance as competition stifled selling.
Sources familiar with the latest transaction told Reuters it could be worth as much as $55 million, including $40 million for Fleming to supply the acquired stores. The deal with Roundy's is expected to close within 45 days, Fleming said.
Fleming begun selling parts of its 110-store supermarket division last month when it announced a $165 million deal for the sale of its 28 stores located in California to private Save Mart Supermarkets.
Fleming, whose shares were driven to 30-year lows in September on worries that a restructuring of its key customer Kmart Corp. could falter, has said it plans to use an expected $450 million from the store division sale to reduce its $2 billion debt.