From the article:
- Safeway will close its doors and make its exit from the Canadian retail market, selling off its operations for 5.8 billion to Sobey’s Inc.
- The buyout of the stores was agreed upon as an all cash sale worth roughly $2 billion. Sobey’s Inc, a Canadian food retail chain, will acquire all 223 stores, including 12 manufacturing facilities.
- "We are pleased to enter into this agreement with Sobeys in order to realize the higher multiples attributed to Canadian supermarket companies," stated Robert Edwards, Safeway president and CEO.
From the article:
"The substantial cash proceeds from this transaction will allow us to create value for Safeway stakeholders and contribute to the growth of the ongoing business." Safeway currently operates 1,415 U.S. stores and 20 manufacturing facilities and last year generated sales of $37.5 billion. The deal has been approved by the boards of both companies, but it must pass muster with Canada’s Competition Act and is expected to close during the fourth quarter.
