Albertson's LLC announced today that its parent company, AB Acquisition LLC,
(“Albertson's”) has signed a definitive agreement under which it will acquire
Albertsons, Acme, Jewel-Osco, Shaw's and Star Market stores and related Osco
and Sav-on in-store pharmacies (collectively, the “Stores”) currently owned by
Minneapolis-based SUPERVALU Inc. SVU. The transaction will consist of Albertson's
acquisition of the stock of New Albertsons, Inc. (“NAI”), a wholly-owned
subsidiary of SUPERVALU Inc., for $100 million in cash plus the assumption of
approximately $3.2 billion in debt. Upon closing, Albertson's will own both
NAI and Albertson's LLC.
Bob Miller, CEO of Albertson's LLC, said of the acquisition, “We are very
excited about the opportunity to acquire Acme, Albertsons, Jewel-Osco, and
Shaw's and Star Market. We see great potential to improve operations, drive
new energy and create a ‘winning attitude' with our store-level associates,
and earn back our customers' trust and business.” Miller continued, “In 2006,
we acquired a set of stores that lacked investment and were in tough shape,
but with our great associates taking care of our customers every day we have
grown into a solid regional supermarket chain with growing sales. I believe we
can be successful again.”
Following the acquisition, Albertson's and its subsidiaries will consist of
1,069 stores and 12 distribution centers, and employ approximately 110,000
associates.
The transaction is subject to customary closing conditions and the completion
of the fully underwritten debt financing at Albertson's LLC and NAI, which has
been provided by a consortium of banks including Bank of America, Merrill
Lynch, Citigroup, Credit Suisse, Morgan Stanley and Barclays.
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