Albertsons, Safeway Selling 168 Stores in Eight States
Sales are part of effort to merge the two grocery retailers
BOISE, Idaho & PLEASANTON, Calif. -- AB Acquisition LLC (Albertsons) and Safeway Inc. entered into agreements to sell 168 stores across eight states to four buyers:
- Associated Food Stores (AFS) will purchase eight stores in Montana and Wyoming.
- Associated Wholesale Grocers (AWG)/Minyards will purchase 12 stores in Texas.
- SUPERVALU will purchase two stores in Washington.
- Haggen will purchase 146 stores across Arizona, California, Nevada, Oregon and Washington.
Some of the site include gasoline kiosks, though it was not announced how many.
Divestiture of these stores is being undertaken in order to secure FTC clearance of the two companies’ proposed merger, which was announced in March and is expected to close in January 2015. The purchase agreements with the four buyers are all subject to approval by the FTC.
Under the terms of the purchase agreements, the buyers will acquire the stores, equipment and inventory, and they intend to hire most, if not all, of the store employees upon the closing of the purchase of the stores. Click here for a complete list of stores to be divested.
“We’re pleased to have found strong buyers for these stores and to have completed this important step toward combining Albertsons and Safeway,” said Safeway president and chief executive officer Robert Edwards, who will serve as the combined company’s president and CEO. “We look forward now to the transaction's close so we can begin working together to enhance the loyalty of grocery shoppers by delivering high-quality products, great service and lower prices to become the favorite local supermarket in every neighborhood we serve.”
Safeway Inc., which operates Safeway, Vons, Pavilions, Randalls, Tom Thumb and Carrs stores, is one of the largest food and drug retailers in the United States with sales of $35.1 billion in 2013. The company operates 1,326 stores in 20 states and the District of Columbia, 13 distribution centers and 19 manufacturing plants.
Established in 2006, AB Acquisition LLC (Albertsons) operates ACME, Albertsons, Jewel-Osco, Lucky, Shaws, Star Market and Super Saver, and stores under the United Family of stores, Amigos, Market Street and United Supermarkets. The company is privately owned by Cerberus Capital Management, Kimco Realty Corp., Klaff Realty, Lubert-Adler Partners and Schottenstein Stores Corp., and currently operates 1,081 stores and 14 distribution centers in 29 states.