Supervalu agreed to sell its Save-A-Lot grocery business to Canada’s Onex for $1.37 billion in cash, offloading a discount chain at a time of heavy price competition in the U.S.

As part of the deal, Supervalu will provide services such as payroll and merchandising technology to Save-A-Lot for five years, the Minneapolis-based company said in a statement Monday. The transaction is slated to be completed by Jan. 31.

The deal is part of a broader shake-up in the U.S. grocery industry, with major players consolidating and scores of supermarkets changing hands. Royal Ahold NV agreed last year to acquire Delhaize Group, combining the Stop & Shop and Food Lion chains. And Kroger Co., the largest U.S. grocery chain, has been gobbling up smaller competitors.

Albertsons Co., meanwhile, postponed plans in October 2015 for an initial public offering, saying the market was too volatile.

St. Louis-based Save-A-Lot operates about 1,370 hard-discount grocery stores — no-frills locations that focus on price. The broader industry has become more cut-throat over the past year, with a bout of food deflation putting pressure on grocery chains.

Shares of Supervalu were down 26 percent this year through the end of last week.