BOISE, ID & PLEASANTON, CA - In order to gain FTC approval for their impending merger, Safeway and Albertsons have confirmed the divestiture of 168 stores throughout Montana, Wyoming, Texas, Washington, Arizona, Nevada, California and Oregon. The four bidders who will be purchasing these stores are:
- Associated Food Stores: 8 stores in Montana and Wyoming
- Associated Wholesale Grocers/Minyards: 12 stores in Texas
- SUPERVALU: 2 stores in Washington
- Haggen: 146 stores across Arizona, California, Nevada, Oregon and Washington
"We're pleased to have found strong buyers for these stores and to have completed this important step toward combining Albertsons and Safeway," said Safeway President and Chief Executive Officer Robert Edwards, who will serve as the combined company's President and CEO. "We look forward now to the transaction's close, so we can begin working together to enhance the loyalty of grocery shoppers by delivering high quality products, great service and lower prices to become the favorite local supermarket in every neighborhood we serve."
According to a press release, the buyers will acquire the stores, equipment and inventory of the purchased stores and are expected to retain the majority of the current employees.
By far, the biggest winner in this deal was Haggen. The 146 stores it gained through this purchase will increase its store count over nine times to 164.
“With this pivotal acquisition, we will have the opportunity to introduce many more customers to the Haggen experience. Our Pacific Northwest grocery store chain has been committed to local sourcing, investing in the communities we serve, and providing genuine service and homemade quality since it was founded in 1933,” said John Caple, Chairman of the Haggen Board of Directors and Partner at Comvest Partners, a private investment firm that owns the majority of shares of Haggen. “We will continue our focus on sourcing and investing locally even with this exciting expansion.”
“We committed to this acquisition because we knew we had the experience, talent and drive to get it done,” added Caple. “The strength of our management and store support teams, combined with the talent of the store teams at each of the new store locations, will enable Haggen to be a successful West Coast grocer.”
CEO John Clougher will be primarily responsible for the operations of the new stores in the northern division comprising Washington and Oregon. Fellow CEO Bill Shaner will guide the company's southern operations in California, Nevada and Arizona.
The two CEOs plan on converting all 146 Safeway and Albertsons stores to the Haggen banner in phases during the first half of 2015.
Congratulations on completing this deal, Safeway and Albertsons!
