AB Acquisitions LLC, which owns Albertson’s LLC and New Albertson’s Inc. (collectively known as Albertsons), has reached a definitive agreement to acquire all outstanding shares of Safeway Inc.
The merger will create a network of more than 2,400 stores, 27 distribution facilities, and 20 manufacturing plants; no stores are expected to close. Bob Miller, Albertsons’ CEO, will become the Executive Chairman of the combined company, and Safeway President and CEO Robert Edwards will remain President and CEO.
“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 Miller. “It also brings together two great organizations with talented management teams.”
Safeway shareholders will receive a total value estimated at $40 per share: $32.50 in cash and the right to receive pro-rata distributions of net proceeds from primarily non-core assets with an estimated value of $3.65 per share. The merger is expected to close in the fourth quarter of 2014.