Safeway and Albertson's Announce Definitive Merger Agreement
Safeway, Inc., Pleasanton, Calif., and Albertsons, Boise, Idaho, announced a definitive agreement under which AB Acquisition LLC, the owner of Albertsons, will acquire all outstanding shares of Safeway. Albertson's LLC and New Albertson's, Inc. are controlled by a Cerberus Capital Management, L.P.-led investor group, which also includes Kimco Realty Corp., Klaff Realty LP, Lubert-Adler Partners LP and Schottenstein Stores Corp.
"This transaction offers us the opportunity to better serve customers by adapting more quickly to evolving shopping preferences in diverse regions across the country,” says Bob Miller, chief executive officer for Albertsons. “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."