Albertsons and Safeway on Friday said that they have completed their proposed merger. Under the terms of the agreement first announced and unanimously approved by Safeway’s board of directors in March 2014, Albertsons will acquire all outstanding shares of Safeway. The deal is valued at approximately $9.2 billion.
The merger creates a company that has 2,230 stores, 27 distribution facilities and 19 manufacturing plants, with more than 250,000 employees across 34 states and the District of Columbia.
The new company will be comprised of three regions and 14 retail divisions, supported by corporate offices in Boise, Idaho; Pleasanton, California; and Phoenix, Arizona. 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. In December, the companies announced the sale of 168 stores to four separate buyers, as divestitures required in order to secure U.S. Federal Trade Commission (FTC) approval of the transaction. The FTC gave its clearance earlier this week.
“We plan to be the favorite local supermarket in every community we serve,” said Safeway President and CEO Robert Edwards, who becomes president and CEO of the newly combined company, effective immediately. “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.”
As previously announced, current Albertsons CEO Bob Miller is transitioning to executive chairman.
“This is a transformative day for both Albertsons and Safeway. This merger creates a unified, strong organization that is dedicated to bringing a better shopping experience to more customers across the country,” said Miller. “Our combined geographic footprint, vast range of brands and products and service-oriented staff will enable us to meet evolving shopping preferences.”
Marc Perrone, International president of the United Food and Commercial Workers (UFCW) International Union, released a statement following the merger completion announcement.
“More than 250,000 Safeway and Albertsons workers are members of the United Food and Commercial Workers Union. UFCW members also work for several other Cerberus Capital Management-operated supermarkets across the country, including Albertsons, Acme, Jewel-Osco and Shaw’s.
“UFCW members have a history of negotiating union contracts with Safeway, Albertsons and Cerberus Capital Management. Together in their union, these workers have been able to ensure that union grocery jobs are the best jobs in the industry with fair pay, decent benefits and job security—all the while ensuring that their companies are able to be profitable and successful.
“UFCW members in California stores that were divested by Albertsons are pleased to learn that the grocery store chain Haggen will acquire many Albertsons stores in California. Haggen workers in the Pacific Northwest are also members of the UFCW. UFCW members across the country are looking forward to working with Safeway, Cerberus and Haggen on issues that pertain to the members and industry. Our members plan to continue to serve their customers and their communities with pride.”
As a result of the completion of the merger, the common stock of Safeway will no longer be listed for trading on the New York Stock Exchange or any other securities exchange.