Albertsons, Safeway selling 168 stores to four buyers
Albertsons, Safeway selling 168 stores to four buyers
Albertsons and Safeway Inc. have entered into agreements, subject to approval by the Federal Trade Commission, to sell 168 stores across eight states to four buyers: Associated Food Stores, Associated Wholesale Grocers, SuperValu and Haggen.
Associated Food Stores will purchase eight stores in Montana and Wyoming; Associated Wholesale Grocers/Minyards will purchase 12 stores in Texas; SuperValu will purchase two stores in Washington; and Haggen will purchase 146 stores across Arizona, California, Nevada, Oregon and Washington.
Divestiture of these stores is being undertaken in order to secure FTC clearance of the 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.
“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.”
With this acquisition, Haggen will expand from 18 stores to 164 stores; from 2,000 employees to more than 10,000 employees; and from a Pacific Northwest company with locations in Oregon and Washington to a major regional grocery chain.
“With this pivotal acquisition, we will have the opportunity to introduce many more customers to the Haggen experience," John Caple, chairman of the Haggen board of directors and partner at Comvest Partners, a private investment firm that owns the majority of shares of Haggen, said in a press release. "Our Pacific Northwest grocery store chain has been committed to local sourcing, investing in the communities we serve, and providing genuine service and homemade quality since it was founded in 1933. We will continue our focus on sourcing and investing locally even with this exciting expansion.”
