Safeway sold for about $9.4 billion, according to an MSN report on Thursday. Safeway, the second-largest mainstream grocery store chain operator in the United States was sold to Cerberus Capital Management – which is a private equity company.
Reportedly, the offer price of $40 per share equates to a premium of 1.3 percent to Safeway’s stock price of $39.42 at the closing bell on the New York Stock Exchange on Thursday.
The sale combines Safeway with Cerberus Capital Management’s Albertsons chain of grocery stores. The deal develops a dominant grocery franchise on the nation’s West Coast. The grocery giant increases to more than 2,400 stores and some 250,000 employees.
There should be no stores closing according to Cerberus. Previously, Cerberus had 650 Albertsons stores from a deal made in 2006. Additionally, Safeway tried to streamline its company by selling off non-core units in the past.
This deal occurs as Safeway has just pulled out of the Chicago area in late 2013. At this time, many stores have been on the market. What will happen to those stores still sitting vacant as previous Safeway (Dominick’s) supermarkets is unknown.