Albertsons, Kroger Portfolio Commands $1.9B
Comprising retail, office and distribution assets, the deal is on track to close early next year.
An Albertsons store in Eugene, Ore. The sale involves properties in 17 states and Washington, D.C. Image courtesy of SweetBabeeJay via iStock
C&S Wholesale Grocers LLC is set to acquire 413 stores, eight distribution centers and two offices that have become available as a result of the proposed merger between Albertsons Cos. and The Kroger Co. announced late last year. The purchase agreement is an approximately $1.9 billion deal.
Along with the portfolio of properties, situated across 17 states and the District of Columbia, the company will add five private label brands to its current portfolio. According to the divestiture plan, the majority of the acquired store locations are in Washington, with 104 Albertsons and Kroger stores. The following top property locations are California, Colorado and Oregon.
Other states with assets included in the deal are Texas, Louisiana, Arizona, Nevada, Illinois, Arkansas, Idaho, New Mexico, Montana, Utah, Wyoming, Washington, D.C., Maryland and Vermont.
The definitive agreement is set to close early next year. As part of the deal, C&S will also acquire the QFC, Mariano’s and Carrs brand names, along with exclusive licensing rights to the Albertsons brand name in Arizona, California, Colorado and Wyoming.
As per the Kroger-Albertsons merger agreement, no stores will close and C&S will retain all frontline associates.
1918 Winter Street Partners, an affiliate of C&S, is set to operate the acquired stores. Centerview Partners was the financial advisor in the deal.
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