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Albertsons-Safeway merger completed

Albertsons croppedAlbertsons and Safeway grocery stores are now a combined grocery store chain with 2,230 stores in 34 states and Washington, D.C. The merger, announced in March 2014, was approved by the Federal Trade Commission on Jan. 27. The chain has corporate offices in Boise as well as Phoenix and Pleasanton, Calif., as well as 27 distribution facilities, 19 manufacturing plants and more than 250,000 employees.

New Albertsons Executive Chairman Bob Miller said Jan. 30 was a transformative day for the company.

“This merger creates a unified, strong organization that is dedicated to bringing a better shopping experience to more customers across the country,” Miller, Albertsons’ former CEO, said in a news release.

The new president and CEO of the company is Robert Edwards, who held that post with Safeway prior to the merger. Edwards said the company’s goal is the be the “favorite local supermarket in every community we serve.”

The $9 billion merger is the latest step in acquisition-filled decade for the Albertsons brand, which was founded by Joe Albertsons in 1939. In 2006, Albertsons was split in two: SuperValu bought most of the better-performing stores, including all its Idaho locations, while a group that included private equity firm Cerberus Capital and Kimco Realty bought the remaining stores and kept a corporate office in Boise. In 2013, the Cerberus group bought all the Albertsons stores, as well as SuperValu’s Acme, Jewel-Osco, Shaw’s and Star Market stores, in a $3.3 billion deal.

Albertsons and Safeway sold off 168 stores, none in Idaho, in December to gain regulatory approval. With the Safeway acquisition, the company now runs stores under the names Vons, Pavilions, Randalls, Tom Thumb, Carrs, and Super Saver, in addition to its United Supermarkets, Market Street and Amigos acquisition in 2013.

About Brad Iverson-Long

Brad Iverson-Long is a reporter for the Idaho Business Review, covering banks, financial services, technology and new business.