Albertsons Gets a New Owner

I wonder if I can have the big "O" from the Albertson's sign to add to my collection when they rename the place...


SUPERVALU (NYSE: SVU) announced today that it reached an agreement with Associated Food Stores for the sale of the majority of its Albertsons stores located in Utah. The sale will include 36 Albertsons stores in Utah and their respective pharmacies and fuel centers, with the exception of three St. George-area stores which will remain Albertsons and continue to be operated by SUPERVALU. In connection with this transaction, SUPERVALU is also seeking a buyer for its two Albertsons stores in Orem, Utah and two Albertsons stores in West Jordan, Utah, and will continue to operate those stores while a buyer is identified. Associated Food Stores intends to rename the 36 purchased stores, and expects to interview and offer employment to most Albertsons associates. SUPERVALU’s Salt Lake City distribution center will remain part of SUPERVALU and will remain open to serve Albertsons stores in Idaho, Wyoming and Montana. The transaction, which is subject to regulatory approval, is expected to close this fall. SUPERVALU will realize approximately $150 million in after-tax net proceeds from the sale.

”While this was a difficult decision due to the impact on our associates and the Utah community, the sale of these stores will allow the company to focus on our greatest growth opportunities while at the same time monetize non-strategic assets for debt paydown,” said Craig Herkert, SUPERVALU CEO. “Albertsons has a long history of serving the Utah marketplace, and the decision to sell these stores was made only after careful analysis and deliberation. We are pleased that Associated Food Stores plans to interview and offer employment to most Albertsons’ associates.”

Founded in 1939, Albertsons was acquired by SUPERVALU in 2006. Albertsons employs more than 3,000 associates throughout the state of Utah.