PLEASANTON, CA-In a moved to shed debt, Safeway Inc., one of the top grocery retailers in North American has reached an agreement to sell its Canadian operations for about $5.7 billion (CAN$5.8) in cash.
The recipient of the 213-store group is Sobey's a Canadian chain owned by Empire Co., Ltd., Nova Scotia, and will include assumption of certain liabilities. Included in the deal are 199 in-store pharmacies and 62 gas stations that are located on the Safeway properties.
"We are pleased to enter into this agreement with Sobeys in order to realize the higher multiples attributed to Canadian supermarket companies," Robert Edwards, president and CEO of Safeway Inc. said in a statement. "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."
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
David Phillips
David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.
