Shares of Supervalu (SVU)  closed higher by 5.54% to $4 on Tuesday, after the wholesale distributor said that it will be acquiring Unified Grocers in a $375 million deal.

Supervalu will pay $114 million in cash for 100% of the outstanding stock of the California-based food distributor. Supervalu will assume $261 million in debt. The deal is expected to close this summer.

"By acquiring the Unified business, including gaining a wealth of expertise and talent, we will become a stronger and more efficient organization. The transaction will enhance our ability to help our customers better compete in the evolving grocery industry," Supervalu CEO Mark Gross said.

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This article was upgraded from its original publish time of 8:26 a.m.