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A supermarket of the Safeway chain. (Photo Credit: Coolcaesar /CC BY-SA 3.0 - FIS)
Safeway and Albertsons to merge
(UNITED STATES, 3/13/2014)
Giant food retailer Safeway Inc. and Albertsons announced a definitive agreement under which AB Acquisition LLC will acquire all outstanding shares of Safeway. The merger agreement was unanimously approved by the Board of Directors of Safeway.
AB Acquisition is the owner of Albertson's LLC and New Albertson's, Inc. and is controlled by a Cerberus Capital Management, L.P.-led investor group.
As a result of the merger, plus other actions to be taken by the Safeway Board of Directors, including the separate sales of certain other primarily non-core assets, and the distribution of Blackhawk shares, Safeway shareholders are expected to receive total value estimated at USD 40 per share.
Albertsons' Chief Executive Officer Bob Miller stated, "This transaction offers us the opportunity to better serve customers by adapting more quickly to evolving shopping preferences in diverse regions across the country. It also brings together two great organizations with talented management teams."
He also highlighted that working together will enable them to create cost savings that translate into price reductions for their customers.
"This merger is one of several actions we have taken in recent months as a result of our strategic business review. The combined value of the transactions described above is expected to deliver a premium to Safeway's shareholders of 72 per cent from one year ago, and 56 per cent over the share price six months ago," said Robert Edwards, President & Chief Executive Officer of Safeway Inc.
"Safeway has been focused on better meeting shoppers' diverse needs through local, relevant assortment, an improved price/value proposition and a great shopping experience that has driven improved sales trends. We are excited about continuing this momentum as a combined organization. We look forward to working with Bob Miller and the rest of the Albertsons team as we proceed together on a path towards becoming an even stronger organization."
The merger will create a diversified network that includes over 2,400 stores, 27 distribution facilities and 20 manufacturing plants with over 250,000 employees. No store closures are expected as a result of this transaction.
Safeway Inc. is a Fortune 100 company and one of the largest food and drug retailers in the United States, with sales of USD 36.1 billion in 2013.
editorial@seafood.media
www.seafood.media
Information of the company:
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Address:
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5918 Stoneridge Mall Road
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City:
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Pleasanton
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State/ZIP:
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California (CA 94588-3247)
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Country:
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United States
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Phone:
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+1 925 467 3000
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Fax:
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+1 925 467 3323
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E-Mail:
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info@safeway.com
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More about: 
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