Albertson's acquisition to fortify SuperValu

Feb. 1, 2006
SuperValu, CVS, and an investment group led by Cerberus Capital Management LP have reached definitive agreements to acquire Albertson's Inc for $17.4

SuperValu, CVS, and an investment group led by Cerberus Capital Management LP have reached definitive agreements to acquire Albertson's Inc for $17.4 billion in cash, stock, and debt assumption.

Under terms of the agreements, Albertson's stockholders will receive $20.35 in cash and a fixed exchange ratio of 0.182 shares of SuperValu stock for each Albertson's share. The value of SuperValu stock shares is $5.94, bringing total consideration per share to $26.29.

SuperValu will acquire the operations of Acme Markets, Bristol Farms, Jewel-Osco, Shaw's Supermarkets, Star Markets, and Albertson's banner stores in the intermountain, Northwest, and Southern California regions. As a result of the acquisition, which totals 1,124 stores, the new SuperValu will become the nation's second-largest supermarket chain. The Cerberus-led group will acquire stores in Dallas/Ft Worth TX, Northern California, Florida, the Rocky Mountains, and the Southwest.

The transaction is subject to approval by both SuperValu and Albertson's stockholders as well as customary regulatory approvals. Jeff Noddle, chairman and chief executive officer of SuperValu, will be chairman and CEO of the combined company.

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