NEWS & VIEWS

Global private equity and venture capital news and research

Cerberus-backed Albertsons acquires Safeway

7 Mar 2014

shopping bag_lrgPrivate equity firm Cerberus Capital Management has backed its portfolio company Albertsons for the acquisition of grocery store chain Safeway.

Safeway shareholders are expected to receive a total of $40 per share, valuing the business at over $9bn.

The deal value represents a premium of 72 per cent from one year ago, and 56 per cent over the share price six months ago.

Last month it was reported that Cerberus was in talks with Safeway about a possible takeover.

Last year a Cerberus-led consortium agreed to buy a clutch of assets from US grocery giant Supervalu in a deal valued at $3.3bn.

Co-head of global private equity at Cerberus Lenard Tessler said, “Albertsons has successfully transformed underperforming retail grocery stores into strong performers by focusing on enhancing the local customer experience.

“Similarly, Safeway has consistently provided outstanding value and customer service throughout the communities it serves.

“Combining these strong management teams will strengthen the ability of Safeway and Albertsons to deliver on a shared commitment to offering customers higher quality products at lower prices, which will undoubtedly yield positive results for all stakeholders in the business.”

Copyright © 2014 AltAssets

FUNDRAISING & INVESTOR RELATIONS


Legals & Terms of UsePrivacy Policy


AltAssets is registered as a trademark of Investor Networks Limited (06695690).
Registered Office: Zetland House, 5-25 Scrutton St, London EC2A 4HJ
Content is © AltAssets 2000-2014