Friday, December 19, 2014
YOLO COUNTY NEWS
99 CENTS

Albertsons parent Cerberus to buy Safeway

By
From page A2 | March 07, 2014 |

Safeway has agreed to be acquired by an investment group led by Cerberus Capital Management, the owner several supermarket chains.

The acquisition is worth about $7.64 billion in cash, and pending other transactions could top more than $9 billion.

The deal, announced late Thursday, will bring together Safeway and Albertsons. Cerberus last year had bought the Albertsons stores it didn’t already own from Supvalu Inc., along with four other Supervalu chains.

It comes amid ongoing consolidation in the supermarket industry, which is facing growing competition from big-box retailers, specialty chains, drug stores and even dollar stores. Kroger Co., a key competitor, recently snapped up regional chain Harris Teeter.

Safeway said in February that it was looking into putting itself up for sale. The Pleasanton, Calif.-based company has been trying to adapt for some time to increased competition and recently shed some of its smaller, less profitable units, such as its Canadian operations and Dominick’s stores in Chicago.

The company has more than 1,300 U.S. locations under banners including Safeway, Vons, Pavilion’s, Randall’s, Tom Thumb and Carrs.

AB Acquisition LLC, which operates Albertsons, along with Acme, Jewel-Osco, Lucky, Shaw’s and other stores, is owned by Cerberus and other investors. It operates more than 1,000 stores. Albertsons is based in Boise, Idaho.

Combined, the companies will have more than 2,400 stores, 27 distribution facilities and 20 manufacturing plants.

Safeway and Albertsons say the deal will allow them to better respond to customer needs and lower costs. They also expect to refurbish some stores and expand its product offerings once it is complete.

The deal is expected to close in final three months of this year. It still needs the approval of Safeway shareholders and federal regulators.

Safeway shareholders will receive $32.50 per share in cash. Pending other actions, the company says the deal is worth roughly $40 per share to stockholders.

Shares of Safeway Inc. closed at $39.47 Thursday. Its shares closed at $34.10 on February 18, the day before Safeway announced it was in talks regarding a potential sale.

The stock fell $1.33, or more than 3 percent, to $38.14 in extended trading after the deal was announced Thursday.

Bob Miller, the current CEO of Albertsons, will become executive chairman of the combined business. Robert Edwards, Safeway’s president and CEO, will become president and CEO of the combined company.

The companies said it is too early to determine where it will be based and exactly what its operations will look like following the deal. It does not anticipate any store closings.

Safeway can still actively review other proposals in the coming weeks.

————

By Candice Choi and Sarah Skidmore Sell, AP business writers

Comments

comments

The Associated Press

.

News

 
UCD, UC team up to study effects of climate change

By Special to The Enterprise | From Page: A1 | Gallery

Teens’ goal? Helping other soccer players around the world

By Anne Ternus-Bellamy | From Page: A1 | Gallery

 
There’s a plate for you at the Davis Holiday Meal

By Dave Ryan | From Page: A1 | Gallery

Help sought in search for runaway Davis teen

By Lauren Keene | From Page: A2

 
Feds release ‘framework’ to rate colleges

By The Associated Press | From Page: A2

Gunfire leads to DUI arrest

By Lauren Keene | From Page: A2

 
Police seek suspect in hit-and-run collision

By Lauren Keene | From Page: A2

 
Creative women share food, friendship

By Enterprise staff | From Page: A3

Konditorei presents free holiday concert

By Enterprise staff | From Page: A3

 
Welcome 2015 with Mumbo Gumbo at a gala bash

By Enterprise staff | From Page: A3

 
Luminaria display planned in West Davis

By Enterprise staff | From Page: A3

Sierra Club calendars on sale Saturday

By Enterprise staff | From Page: A3

 
Willett bench is a labor of love

By Jeff Hudson | From Page: A4

Author! Author! UCD hosts talks, Q and A on Asia-focused books

By Special to The Enterprise | From Page: A4

 
Blue Christmas service planned at Davis churches

By Enterprise staff | From Page: A4

Libraries will be closed around the holidays

By Enterprise staff | From Page: A5

 
See diving ducks at city wetlands tour

By Special to The Enterprise | From Page: A5 | Gallery

 
Downtown gift cards get a new perk

By Enterprise staff | From Page: A6

Meditation, Buddhism classes offered

By Enterprise staff | From Page: A7

 
Nobel Prize winner will discuss research related to autism

By Special to The Enterprise | From Page: A8

A home for the holidays?

By Enterprise staff | From Page: A8 | Gallery

 
Traditional carols service is Saturday at St. Martin’s

By Enterprise staff | From Page: A9

Explorit: Experience nano this spring

By Lisa Justice | From Page: A9 | Gallery

 
Supplies collected for victims of abuse

By Enterprise staff | From Page: A11

Grandmothers support group meets weekly

By Enterprise staff | From Page: A11, 1 Comment

 
Soup’s On will benefit NAMI-Yolo

By Enterprise staff | From Page: A11

Donate to STEAC at Original Steve’s

By Enterprise staff | From Page: A11

 
.

Forum

He needs them to pay up

By Creators Syndicate | From Page: B5

 
Kudos to Central Park Gardens donors and volunteers

By Letters to the Editor | From Page: A14

Tom Meyer cartoon

By Debbie Davis | From Page: A14

 
Cheers and Jeers: Have you ever seen the rain?

By Our View | From Page: A14

Defeating Ebola involves medicine, and prayers

By Special to The Enterprise | From Page: A14 | Gallery

 
.

Sports

Cousins is back in lineup but Kings fall

By The Associated Press | From Page: B1 | Gallery

 
Devil boys hold off scrappy Rio Linda

By Bruce Gallaudet | From Page: B1 | Gallery

Lady Blue Devils rout an undefeated Liberty squad

By Enterprise staff | From Page: B1

 
UCD RB coach Wright heads to Florida; what next?

By Bruce Gallaudet | From Page: B1

Aggies nab junior college defensive lineman

By Enterprise staff | From Page: B1

 
Nostra-Dunning makes his college bowl picks

By Bob Dunning | From Page: B2

Tennyson’s first goal is the difference in Sharks win

By The Associated Press | From Page: B6 | Gallery

 
.

Features

Name droppers: Trio elected to academy of inventors

By Enterprise staff | From Page: A11

 
.

Arts

‘Before Midnight’ screening is tonight

By Enterprise staff | From Page: A15

 
DMTC plans New Year’s Eve party

By Enterprise staff | From Page: A15

Tom Rigney and Flambeau to play

By Enterprise staff | From Page: A15

 
 
DMTC announces auditions for ‘Sweeney Todd’

By Enterprise staff | From Page: A15

 
.

Business

After 19 years, Alfa Romeo returns

By Ann M. Job | From Page: A16

 
.

Obituaries

Rena Sylvia Smilkstein

By Special to The Enterprise | From Page: A6

 
.

Comics