Albertsons announces acquisition of remaining 29 Haggen locations

BOISE, Idaho - Albertsons on Monday submitted a binding bid letter and form of Asset Purchase Agreement to Haggen for the purchase of 29 of Haggen's core stores, confirming reports that Alebertsons would seek to acquire the remaining Haggen core. This is a step in the process to obtain bankruptcy court approval, following Haggen's Chapter 11 filing on September 8, 2015, which is required for consummation of the purchase.

 

The proposed plan would create a separate business unit for 14 Haggen stores which today are part of the original Haggen "legacy" store chain. They would continue to be operated separately from Bellingham under their existing Haggen name along with a legacy Safeway location in Oak Harbor, Washington that was converted to a Haggen location in 2015.  

 

The remaining 14 stores are stores that Haggen acquired from Albertsons in 2015. Following the transaction close, these stores will be transitioned over time back to the Albertsons banner, six of which will be operated by Albertsons' Seattle division and eight by the Portland division.  

 

Antitrust clearance of the acquisition was obtained last week. The company expects to close on the transaction in the coming weeks, pending customary legal and bankruptcy court approvals.   

 

"Haggen's original core group of Pacific Northwest stores set the gold standard in the markets they serve for quality fresh products and exceptional service," stated Bob Miller, Albertsons chairman and CEO. "We are proud to now be associated with this tradition, and want to assure Haggen's dedicated shoppers that the stores will continue to offer customers the freshest local products available and exceptional service, with the same great employees at the stores." 

 

Albertsons plans to hire substantially all store employees and also honor existing labor agreements to staff the stores.

 

"We are excited about the opportunity to have the backing of Albertsons and look forward to be part of the Albertsons grocery family," commented Haggen CEO John Clougher. "Haggen has been a part of the Pacific Northwest and the Bellingham community for more than eight decades and we will continue the traditions of operating great Haggen stores focused on community involvement, fresh northwest products and great service." 

 

The bankruptcy court will consider approval of the sale agreement on March 29, 2016.