New Albertson’s buys five more Dominick’s stores; names president of Jewel-Osco
ITASCA, Ill. — New Albertson’s has acquired five Dominick’s locations and appointed Shane Sampson, currently president of the company’s Boston-based Shaw’s Division, as president of the Jewel-Osco division based in Chicago.
Sampson fills the role that had been held by interim division president Jim Rice since January 2014.
Sampson’s first project highlights the company’s commitment to investing in Chicago: Remodeling and reopening five additional former Dominick’s locations.
The company indicated that it is investing approximately $100 million in new projects and remodels for Jewel-Osco this year in the neighborhoods where it does business.
A fourth-generation grocer, Sampson started working at Albertsons as a courtesy clerk and held positions of increasing responsibility at the store, district and division levels. He also served as division president in the Intermountain and Florida divisions of Albertson’s. Prior to joining NAI in March 2013, he was SVP operations at Giant Food.
“Shane is an exceptional leader and his work at Shaw’s over the last year proves that he is the right executive to be at the helm of our largest division,” stated NAI COO Justin Dye. “Over the last year, we’ve focused on restoring Jewel-Osco’s tradition of excellence and commitment to Chicago and the surrounding area. Our customers deserve nothing less than the best, and we are striving for excellence. We are aspiring to be the best food and drug retailer in the neighborhoods that we are privileged to serve. Our team members have set our sights on having the best customer service around and truly the best in fresh foods, and not just with higher quality produce and our fresh juice bars in our remodeled stores, but also with expanded organics, fresh cuts of meat and amazing fresh meal selections. Our goal is to have all of our stores truly showcasing our passion for food and exceptional service. Likewise, Shane’s passion for the grocery business makes him a perfect fit for Jewel-Osco."
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Two Supervalu board members, both with Cerberus, resign in wake of Safeway/Albertsons deal
MINNEAPOLIS — Supervalu on Thursday announced that two of its directors, Mark Neporent and Lenard Tessler, have stepped down from the board of directors effective immediately. Neporent and Tessler were both appointed to the board in 2013 as designees of Symphony Investors, a Cerberus Capital Management L.P.-led investor consortium, under the terms of the Tender Offer Agreement entered into with Symphony Investors and Cerberus in connection with Supervalu’s sale of five banners to an affiliate of Symphony Investors.
Symphony Investors owns approximately 20.9% of Supervalu’s outstanding common stock. Under the terms of the Tender Offer Agreement, Symphony Investors has the right to designate replacement directors for Neporent and Tessler.
Neporent is the COO and general counsel for Cerberus Capital Management. Tessler is the co-head of global private equity and senior managing director of Cerberus Capital Management. The two board members’ resignations followed the announcement of a definitive agreement under which AB Acquisition, an entity controlled by a Cerberus-led investor group, will acquire all outstanding shares of food retailer Safeway.
“In light of the transaction announced today, we felt it was in the best interests of Supervalu for us to resign our seats on the Supervalu board," Neporent said. "The directors who will be designated to replace Lenard and me under the Tender Offer Agreement are expected to be independent of both Cerberus and Supervalu and will add to Supervalu’s outstanding board.”
Commenting on the change in the board, Supervalu’s non-executive chairman Gerald Storch said, “I would like to thank Mark and Lenard for serving on Supervalu’s board of directors and for their important contributions during the transition period following the banner sale. We look forward to working with Cerberus to identify two new, highly-qualified director designees to replace Mark and Lenard, and who will help to lead our organization into the future.”
Supervalu’s board currently has nine members, including seven members who are independent directors under the New York Stock Exchange listing standards.
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Albertsons to acquire Safeway in deal worth more than $9.1 billion to Safeway shareholders
PLEASANTON, Calif. — Cerberus won the bid for Safeway.
Safeway and Albertsons on Thursday announced a definitive agreement under which AB Acquisition will acquire all outstanding shares of Safeway in a deal valued at more than $9.1 billion. The transaction is expected to close in the fourth quarter of this year.
The companies will operate independently until closing.
Bob Miller, who will be the executive chairman of the new company of more than 2,400 stores, said, "We intend on keeping the existing retail footprint of both companies." Safeway’s Robert Edwards will serve as president and CEO of the new company. "This deal will create a substantial cost savings," Miller told reporters and analysts Thursday evening. "These are real savings that we will be able to pass along to our customers in lower prices." Miller also noted that the increased buying heft will benefit all banners operating under Albertsons and Safeway.
Shareholders will receive $32.50 per Safeway share in cash, $3.65 per share on the sale of Safeway’s Mexican interest Casa Ley and other holdings and $3.90 per share with the distribution of Safeway’s ownership interest in Blackhawk to Safeway shareholders. That distribution is expected to happen in mid-April.
The merger agreement was unanimously approved by the board of directors of Safeway. AB Acquisition is the owner of Albertson’s and New Albertson’s (collectively “Albertsons”), and is controlled by a Cerberus Capital Management-led investor group, which also includes Kimco Realty Corporation, Klaff Realty, Lubert-Adler Partners and Schottenstein Stores Corporation.
As a result of the merger, Safeway shareholders are expected to receive total value estimated at $40 per share.
Albertsons’ Miller stated: “This transaction offers us the opportunity to better serve customers by adapting more quickly to evolving shopping preferences in diverse regions across the country. It also brings together two great organizations with talented management teams. Robert Edwards and his team have done an outstanding job in positioning Safeway’s core business for success by investing in its stores and creating innovative strategic marketing programs that contribute to shareholder value. Working together will enable us to create cost savings that translate into price reductions for our customers. Together, we will be able to respond to local needs more quickly and deliver outstanding products at the lowest possible price, more efficiently than ever before.”
“This merger is one of several actions we have taken in recent months as a result of our strategic business review. The combined value of the transactions described above is expected to deliver a premium to Safeway’s shareholders of 72% from one year ago, and 56% over the share price six months ago,” said Edwards, current president and CEO of Safeway. “Safeway has been focused on better meeting shoppers’ diverse needs through local, relevant assortment; an improved price/value proposition and a great shopping experience that has driven improved sales trends. We are excited about continuing this momentum as a combined organization. We look forward to working with Bob Miller and the rest of the Albertsons team as we proceed together on a path towards becoming an even stronger organization.”
Here we go again
Hi David, As soon as we have more information, we'll be sure to include it in our coverage. Ryan Chavis Online Editor, Drug Store News
Do we have any information yet about which banners will be included, and which headquarters will be used? Will the new Albertson's include all the current Safeway banners plus any of the banners that Albertson's was taking over from Supervalu? Where will the buying offices be located? David Biernbaum David Biernbaum & Associates LLC [email protected] www.biernbaum.com