BOISE, Idaho, and PLEASANTON, Calif. — AB Acquisition LLC, the parent of Albertsons, has completed its acquisition of Safeway Inc., a $9 billion-plus deal unveiled last year.
The supermarket chains announced the closing of the agreement Friday, a couple of days after the deal was approved by the Federal Trade Commission.
Under the agreement, announced last March, AB Acquisition LLC will acquire all outstanding shares of Safeway, which will no longer be listed for trading on the New York Stock Exchange or any other securities exchange. AB Acquisition is controlled by an investor group led by Cerberus Capital Management L.P., which also includes Kimco Realty Corp., Klaff Realty L.P., Lubert-Adler Partners L.P. and Schottenstein Stores Corp.
The combined company will have 2,230 stores — including nearly 2,000 pharmacy locations — as well as 27 distribution facilities and 19 manufacturing plants with over 250,000 employees across 34 states and the District of Columbia.
Accoding to Safeway president and CEO Robert Edwards, who takes the same role at the merged company, the closing of the deal paves the way for an enhanced shopping experience.
"We plan to be the favorite local supermarket in every community we serve," Edwards said in a statement. "We will do this by knowing, listening to and delighting our customers; providing the right products at a compelling value; and delivering a superior shopping experience. We will also continue to be active members of our local communities."
The new company will encompass three regions and 14 retail divisions, supported by corporate offices in Boise, Idaho; Pleasanton, Calif.; and Phoenix. Its retail banners include Safeway, Vons, Pavilions, Randalls, Tom Thumb, Carrs, Albertsons, Acme, Jewel-Osco, Lucky, Shaw’s, Star Market, Super Saver, United Supermarkets, Market Street and Amigos.
"This is a transformative day for both Albertsons and Safeway," stated Albertsons CEO Bob Miller, now executive chairman of the combined company. "This merger creates a unified, strong organization that is dedicated to bringing a better shopping experience to more customers across the country. "Our combined geographic footprint, vast range of brands and products, and service-oriented staff will enable us to meet evolving shopping preferences."