| brassmonkey |
03-07-2014 11:46 AM |
Cerberus Buys Safeway, Merges It With Albertsons For Over $9 Billion
After a long courtship, private equity giant Cerberus Capital Management agreed to buy Safeway for over $9 billion on Thursday afternoon.
Safeway, the 2nd-largest grocer in the US, will merge with Albertson?s, the 5th-largest grocer, which Cerberus bought from SuperValu last year. The deal will give Safeway shareholders an estimated $40 per share, including $32.50 in cash.
The deal making may not be over soon, though. Kroger , the country?s largest grocer (nearly twice as large as Safeway by revenue), is reportedly considering making its own offer for its competitor. The company previous outbid Cerberus for the Harris Teeter chain of supermarkets, paying $2.4 billion last summer.
?Safeway has been focused on better meeting shoppers? diverse needs through local, relevant assortment, an improved price/value proposition and a great shopping experience that has driven improved sales trends,? Safeway CEO Robert Edwards said in a statement. ? We are excited about continuing this momentum as a combined organization.?
? This transaction offers us the opportunity to better serve customers by adapting more quickly to evolving shopping preferences in diverse regions across the country,? Albertsons CEO Bob Miller said. ?Together, we will be able to respond to local needs more quickly and deliver outstanding products at the lowest possible price, more efficiently than ever before.?
Safeway has more than 1,300 stores in the US. It ended the day trading at $39.47, but the stock fell over 3.5% after hours.
http://www.forbes.com/sites/briansol...ver-9-billion/ |
