Albertsons, Safeway to sell 168 stores to four buyers

BOISE, Idaho and PLEASANTON, Calif. — AB Acquisition LLC (Albertsons) and Safeway have entered into agreements to sell 168 stores across eight states to four buyers — Associated Food Stores, Associated Wholesale Grocers, Supervalu and Haggen.

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  Associated Food Stores will purchase eight stores in Montana and Wyoming;


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  Associated Wholesale Grocers/Minyards will purchase 12 stores in Texas;


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  Supervalu will purchase two stores in Washington; and


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  Haggen will purchase 146 stores across Arizona, California, Nevada, Oregon and Washington.

Financial terms of the deal were not disclosed. Divestiture of these stores is being undertaken in order to secure FTC clearance of the companies’ proposed merger, which was announced in March and is expected to close in January 2015. The purchase agreements with the four buyers are all subject to approval by the FTC.



Under the terms of the purchase agreements, the buyers will acquire the stores, equipment and inventory, and they intend to hire most, if not all, of the store employees upon the closing of the purchase of the stores. Subject to FTC approval, the divested stores will continue to operate as competing grocery stores.



“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 CEO 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.”