Safeway and Albertsons approve merger
June 20, 2014
The owner of Albertsons announced Thursday that it will acquire all outstanding shares of Safeway creating a single supermarket chain.
Douglas County is home to one Safeway located at Round Hill Mall.
According to a release issued by the company, Safeway shares will be acquired by AB Acquisition, the owner of Albertson's LLC and New Albertson's, Inc. (collectively "Albertsons") and is controlled by a Cerberus Capital Management, L.P. ("Cerberus")-led investor group, which also includes Kimco Realty Corporation, Klaff Realty LP, Lubert-Adler Partners LP, and Schottenstein Stores Corporation.
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 noncore assets, and the distribution of Blackhawk shares, Safeway shareholders are expected to receive total value estimated at $40 per share.
"This transaction offers us the opportunity to better serve customers by adapting more quickly to evolving shopping preferences in diverse regions across the country," said. Albertsons' Chief Executive Officer Bob Miller. "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."
Safeway President & Chief Executive Officer Robert Edwards said the merger is one of the actions taken as a result of their business review.
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"The combined value of the transactions described above is expected to deliver a premium to Safeway's shareholders of 72 percent from one year ago, and 56 percent over the share price six months ago," Edwards said. "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."
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