AB Acquisition LLC and Safeway Inc. to sell 168 stores across eight states to four buyers

Subject to FTC approval, divested stores will continue to operate as competing grocery stores

BOISE, ID and PLEASANTON, CA, 2014-12-22 — /EPR Retail News/ — AB Acquisition LLC (Albertsons) and Safeway Inc. (NYSE: SWY) announced today that they have entered into agreements, subject to approval by the Federal Trade Commission (FTC), to sell 168 stores across eight states to four buyers:

  • Associated Food Stores (AFS) will purchase eight stores in Montana and Wyoming;
  • Associated Wholesale Grocers (AWG)/Minyards will purchase 12 stores in Texas;
  • SUPERVALU will purchase two stores in Washington; and
  • Haggen will purchase 146 stores across Arizona, California, Nevada, Oregon and Washington.

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.. For a complete list of stores to be divested, please visit: http://www.albertsons.com/tellmemore.

“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 Chief Executive Officer 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.”

About Safeway Inc.
Safeway Inc., which operates Safeway, Vons, Pavilions, Randalls, Tom Thumb and Carrs stores, is a Fortune 100 company and one of the largest food and drug retailers in the United States with sales of $35.1 billion in 2013. The company operates 1,326 stores in 20 states and the District of Columbia, 13 distribution centers and 19 manufacturing plants, and employs approximately 138,000 employees. The company’s common stock is currently traded on the New York Stock Exchange (NYSE) under the symbol SWY. The company will be delisted from the NYSE upon closing of the merger. For more information, please visit www.Safeway.com.

About Albertsons
Established in 2006, AB Acquisition LLC (Albertsons), which operates ACME, Albertsons, Jewel-Osco, Lucky, Shaws, Star Market and Super Saver, and stores under the United Family of stores, Amigos, Market Street and United Supermarkets, is working to become the favorite food and drug retailer in every area it serves. The company is privately owned by Cerberus Capital Management, Kimco Realty Corporation, Klaff Realty, Lubert-Adler Partners and Schottenstein Stores Corporation, and currently operates 1,081 stores and 14 distribution centers in 29 states and employs approximately 115,000 associates. For more information, please visit www.Albertsons.com.

Forward-Looking Statements

This press release contains certain “forward-looking” statements as that term is defined by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are indicated by words such as “expects,” “will,” “plans,” “intends,” “committed to,” “estimates” and “is.” No assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur. Accordingly, actual results may differ materially and adversely from those expressed in any forward-looking statements. Neither Safeway nor any other person can assume responsibility for the accuracy and completeness of forward-looking statements. There are various important factors that could cause actual results to differ materially from those in any such forward-looking statements, many of which are beyond Safeway’s control. These factors include: failure to obtain, delays in obtaining or adverse conditions contained in any required regulatory or other approvals; failure to consummate or delay in consummating the transactions described herein for any other reasons; changes in laws or regulations; and changes in general economic conditions. Safeway undertakes no obligation (and expressly disclaims any such obligation) to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. For additional information please refer to Safeway’s most recent Form 10-K, 10-Q and 8-K reports filed with the Securities and Exchange Commission.

Media Contacts:

Christine Wilcox
christine.wilcox@albertsons.com | 208-395-4163

Brian Dowling
brian.dowling@safeway.com | 925-467-3787

 Investor Contact:

Christiane Pelz  | 925-467-3832

 

Albertsons and Safeway Inc. announce new senior leadership team and division leaders for the newly merged company

BOISE, ID and PLEASANTON, CA, 2014-9-22— /EPR Retail News/ — AB Acquisition LLC (Albertsons) and Safeway Inc. (NYSE: SWY) announced today the new senior leadership team and division leaders  for the combined company that will take effect upon the closing of the proposed merger transaction, which is pending customary regulatory approvals.

“We’re drawing on the strong talent within both companies to build an innovative, customer-focused and growth-driven company,” said Safeway President and Chief Executive Officer, Robert Edwards, who will serve as the combined company’s president and CEO.  “We are confident in this team’s ability to build a great company that’s positioned to win over the long term by earning the loyalty of grocery shoppers in every market we serve and delivering superior operational and financial results.”

After regulatory approval and closing of the transaction, the new company will have the following leadership team:

  • Bob Gordon, Executive Vice President & General Counsel
  • Shane Sampson, Executive Vice President, Marketing & Merchandising
  • Andy Scoggin, Executive Vice President, Human Resources, Labor Relations, Public Affairs & Government Affairs
  • Jerry Tidwell, Executive Vice President, Supply Chain & Manufacturing
  • Lee Wilson, Executive Vice President & Chief Administrative Officer
  • Bob Dimond, Executive Vice President & Chief Financial Officer, reporting to Mr. Wilson
  • Justin Ewing, Executive Vice President, Corporate Development & Real Estate, reporting to Mr. Wilson
  • Barry Libenson, Interim Executive Vice President & Chief Information Officer, reporting to Mr. Wilson.  Mr. Libenson is expected to be with the new company through March 2015, at which time a successor will be named.
  • Wayne Denningham, Executive Vice President & Chief Operating Officer, South Region
  • Justin Dye, Executive Vice President & Chief Operating Officer, East Region
  • Kelly Griffith, Executive Vice President & Chief Operating Officer, North Region

The new company will be comprised of three regions and 14 retail divisions. The company will keep the focus and financial responsibility at the division level, but take full advantage of the expertise, vision and core capabilities of the corporate team.  The 14 divisions will be supported by corporate offices in Boise, ID, Pleasanton, CA, and Phoenix, AZ.

The division presidents for the new company, who will report to the chief operating officer for their respective regions, will be:

  • Dennis Bassler, Portland Division, North Region
  • Paul McTavish, Denver Division, North Region
  • Susan Morris, Intermountain Division, North Region
  • Tom Schwilke, Northern California Division, North Region
  • Dan Valenzuela, Seattle Division, North Region
  • Shane Dorcheus, Southwest Division, South Region
  • Scott Hays, Southern Division, South Region
  • Sidney Hopper, Houston Division, South Region
  • Lori Raya, Southern California Division, South Region
  • Robert Taylor, United Division, South Region
  • Steve Burnham, Eastern Division, East Region
  • Jim Perkins, Acme Division, East Region
  • Jim Rice, Shaw’s Division, East Region
  • Mike Withers, Jewel-Osco Division, East Region

No banner changes are planned.

“We know the best way to grow our business is to have the highest quality fresh departments, lower prices, clean, well-stocked stores and the best customer service in the market,” said Bob Miller, Albertsons current CEO, who will become Executive Chairman of the combined company upon completion of the transaction.  “Our teams will focus on delivering what customers want locally, and we will give our store teams more flexibility to make decisions that are right for their neighborhoods.  The division teams will have the responsibility to have the right assortment for their markets.”

Safeway shareholders approved the proposed merger agreement on July 25, under which AB Acquisition LLC, an affiliate of Albertsons, will acquire all outstanding shares of Safeway.  The transaction is under review by the Federal Trade Commission and is expected to close in the fourth quarter of this year, pending FTC approval.

About Safeway Inc.
Safeway Inc., which operates Safeway, Vons, Pavilions, Randalls, Tom Thumb, and Carrs stores, is a Fortune 100 company and one of the largest food and drug retailers in the United States with sales of $35.1 billion in 2013. The company operates 1,331 stores in 20 states and the District of Columbia, 13 distribution centers and 19 manufacturing plants, and employs approximately 138,000 employees. The company’s common stock is traded on the New York Stock Exchange under the symbol SWY. For more information, please visit www.Safeway.com.

 

About Albertsons
Established in 2006, AB Acquisition LLC (“Albertsons”), which operates ACME, Albertsons, Jewel-Osco, Lucky, Shaws, Star Market and Super Saver, and stores under the United Family of stores, Amigos, Market Street and United Supermarkets, is working to become the favorite food and drug retailer in every market it serves. The company is privately owned by Cerberus Capital Management, Kimco Realty Corporation, Klaff Realty, Lubert-Adler Partners, and Schottenstein Stores Corporation, and operates 1,081 stores and 14 distribution centers in 29 states and employs approximately 115,000 associates. For more information, please visit www.Albertsons.com.

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Media Contacts:

Christine Wilcox
christine.wilcox@albertsons.com | 208-395-4163

Brian Dowling

brian.dowling@safeway.com | 925-467-3787