Safeway Inc. and Albertsons announced today a definitive agreement that will pave the way for AB Acquisition LLC to acquire all outstanding shares of Safeway. AB Acquisition already controls Albertson’s LLC and New Albertson’s, Inc. and is itself controlled by a Cerberus Capital Management, L.P.-led investor group that also includes Kimco Realty Corp. Klaff Realty LP, Lubert-Adler Partners LP, and Schottenstein Stores Corp.
The agreement states that Safeway shareholders should receive about $40 per share in the transaction.
In announcing the move, Albertsons’ CEO 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. Robert Edwards and his team have done an outstanding job in positioning Safeway’s core business for success, by investing in its stores and creating innovative strategic marketing programs that contribute to shareholder value. Working together will enable us to create cost savings that translate into price reductions for our customers. Together, we will be able to respond to local needs more quickly and deliver outstanding products at the lowest possible price, more efficiently than ever before.”
Robert Edwards, Safeway president and CEO, noted, “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.”