Posted 1 year ago
By Post Staff
Safeway, the second-largest grocery chain in the country, has agreed to be sold to for over $9-billion dollars to private equity giant Cerberus Capital Management. Cerberus purchased Albertson’s, the 5th-largest chain, last year and plans merge the two.
There are five Safeway stores in this region…Chadron, Alliance, Sidney, Scottsbluff, and Rapid City. Albertsons had stores in Rapid City and Scottsbluff, but closed them in a regional downsizing several years ago.
Safeway has 1,335 stores in the United States,,,506 of them in California…and 195 in northwestern Mexico, operating them under 7 different chain names. Albertsons has 1,119 supermarkets in 29 states under 12 different names.
Safeway CEO Robert Edwards says in a prepared statement that the sale and merger will continue Safeway’s focus on best meeting the diverse needs of shoppers.
Albertsons CEO Bob Miller says the combined chain will be able to respond more quickly to local needs in diverse regions of the country more quickly and deliver outstanding products at the lowest possible price and more efficiently than ever before.
The deal with Cerberus will give Safeway shareholders an estimated $40 per share, including $32.50 in cash, but the parent company of Krogers…the country’s biggest grocer with nearly twice the revenue of Safeway…is reportedly considering making an offer of its own.