The owner of Albertsons grocery stores is buying Safeway Inc., the second-largest U.S. mainstream grocery store operator, in a deal valued at about $9.4 billion.
The offer price of $40 per share from private equity firm Cerberus Capital Management represents a premium of 1.3 percent to Safeway's Thursday closing.
In a statement on the Albertsons website, the company said the deal "will create a diversified network that includes over 2,400 stores, 27 distribution facilities and 20 manufacturing plants with over 250,000 dedicated and loyal employees. No store closures are expected as a result of this transaction."
Bob Miller, Albertsons current CEO, will become executive chairman. Robert Edwards, Safeway’s president and CEO, will become president and CEO of the combined company.
The combined company will operate: Safeway, Vons, Pavilions, Randalls, Tom Thumb, Carrs, Albertsons, ACME, Jewel-Osco, Lucky, Shaw’s, Star Market, Super Saver, United Supermarkets, Market Street and Amigos in 34 states and the District of Columbia.
The deal is expected to close in the fourth quarter.