- Category: Supermarket Takeovers Mergers Acquisitions
- Last Updated on Thursday, 13 March 2014 16:35
- Written by Grocery News
After spinning off Canadian operations in a $5.8 billion deal with Sobeys late last year, Safeway Inc is selling the rest of its business. Cerberus Capital Management will pay shareholders $7.64 billion cash ($32.5 a share) / $9.4b total ($40 a share) for the Pleasanton, California-based grocer. The deal involves 1,300 stores under six banners among them Vons, Randall's and Pavillion's.
Just over one year ago Cerberus Capital acquired Albertson's, Jewel Osco, Acme and Shaw's from Supervalu for little more than $3.2 billion. Those banners had previously accounted for approximately half of Supervalu's revenue and locations.
The combined company will be based in Boise-Idaho and headed by Safeway's President and CEO Robert Edwards. The new company will have 2400 stores, 20 manufacturing plants, 27 distribution facilities.
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details of the Cerberus-Supervalu deal struck last year - it was through this prior deal that Cerberus entered the grocery market.