<p>Safeway has revealed that it has entered into an agreement to sell its Canadian operations through a sale of the net assets of Canada Safeway Limited to Sobeys Inc. for $ 5.68 Billion USD in cash. According to a press release, the proceeds from this transaction are expected to be used to pay down $2.0 billion of debt. A large part of the remainder will be used to buy back stock. Some of the proceeds may be used to invest in growth opportunities for Safeway.</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p>In the twelve months that ended March 23, 2013, Canada Safeway's revenues were $6.56 Billion USD. In addition, Canada Safeway's operating profit was $419 Million USD and EBITDA was $533 Million USD. Beginning in the second quarter of 2013, Canada Safeway will be accounted for as discontinued operations. Safeway will remains responsible for Canada Safeway's $294 Million USD in public debt due March 2014, a number not included in the transaction. Safeway will also retain cash and other receivables in a similar amount in Canada, the release states.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">"We are pleased to enter into this agreement with Sobeys in order to realize the higher multiples attributed to Canadian supermarket companies," said Robert Edwards, President and CEO of Safeway Inc. "The substantial cash proceeds from this transaction will allow us to create value for Safeway stakeholders and contribute to the growth of the ongoing business."<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">The transaction has been approved by the boards of directors for both companies and is anticipated to close in the fourth quarter of 2013. </p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p>Stay tuned to AndNowUKnow for updates on the transaction.</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href=" http://www.safeway.com/IFL/Grocery/Investors#iframetop " target="_new"> Safeway </a></p><hr class="legacyRuler"><hr class="invisible minimal-padding">
