Albertsons Owner to Buy Safeway for More than $9 Billion
Customers leave a Safeway store on March 5 in San Francisco. Private equity firm Cerberus Capital Management LP, owner of the Albertsons grocery chain, agreed to buy Safeway for more than $9 billion.Justin Sullivan / Getty Images
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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.
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.