NorthwestMarch 7, 2014

News release says no store closures are planned

Associated Press and Tribune

PLEASANTON, Calif. - Safeway says it has agreed to be acquired by an investment group led by Cerebus Capital Management, the owner of Albertsons and several other supermarket chains.

The acquisition is worth about $7.64 billion in cash, and pending other transactions could top more than $9 billion.

It comes amid ongoing consolidation in the supermarket industry, which is facing growing competition from big-box retailers, specialty chains, drug stores and even dollar stores.

No store closures are anticipated as a result of the transaction, according to a news release about the pending deal. Albertsons has locations in Lewiston and Clarkston, while Safeway has stores in Lewiston, Moscow and Pullman.

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Cerebus bought five chains, including Albertsons and Jewel-Osco, from Supervalu Inc. last year. Kroger Co. also recently snapped up regional chain Harris Teeter.

Safeway shareholders will receive $32.50 per share in cash. Pending other deals, the company said the deal is worth roughly $40 per share to stockholders.

Shares of Pleasanton, Calif.-based Safeway Inc. closed at $39.47

Thursday.

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