Roundy's to acquire 11 Dominick's stores from Safeway
Roundy's to acquire 11 Dominick's stores from Safeway
Roundy’s Inc. has signed a definitive agreement to acquire 11 Dominick’s stores from Safeway Inc. in a $36 million cash and lease assumption transaction. The stores will be converted to the Mariano’s banner, Roundy’s growth banner, in the Chicago metropolitan area.
“This acquisition is transformational in terms of Mariano’s expansion plans in the Chicago metropolitan area, allowing us to open 11 additional stores in 2014 in prime locations with great market demographics,” Robert Mariano, chairman, president and chief executive officer of Roundy’s, said in a press release. “These key locations will seamlessly integrate into and complement our existing base of 13 Mariano’s locations as well as our five additional 2014 Mariano’s locations now under construction.”
Earlier this year, Safeway announced its decision to exit the Chicago market and focus its efforts in other operating areas. It continues to be actively engaged in a process to identify purchasers for its remaining stores in the Chicago market.
Safeway previously announced the sale of four stores in the greater Chicago area to New Albertsons Inc., which operates Jewel-Osco grocery stores.
Roundy’s expects to close the transaction in the second half of December. There will be a transition period of approximately one to two months during which Roundy’s will take possession of the stores and convert them to its Mariano’s banner.