March 7, 2014 1:00 PM, EST
Safeway, Albertson’s to Merge
Matthew Staver/Bloomberg News

Grocery retailers Safeway Inc. and Albertson’s have agreed to merge, creating a network of 2,400 stores, 27 distribution facilities and 20 manufacturing plants in the United States.

Both companies maintain substantial private truck fleets, with Safeway ranking No. 26 on the Transport Topics Top 100 Private Carriers list with 1,210 tractors, 450 straight trucks and 4,390 trailers. Albertson’s ranks No. 47 with 670 tractors and 2,500 trailers.

Under terms of a deal announced March 6, the owner of Albertson’s — an investor group led by Cerberus Capital Management — will pay $32.50 a share to Safeway shareholders, plus new shares in Blackhawk Network, a gift card business that Safeway is spinning off to shareholders.

Safeway shareholders also will receive proceeds from the planned sale of the company’s 49% stake in Mexican retailer Casa Ley S.A. de C.V.

Safeway also operates, an on online grocery business.

Company officials said the merger will allow the firms to share best practices and realize cost savings, including a “more efficient distribution and supply chain.”

Safeway had earlier sold some of its stores in Chicago to Albertson’s. In November, the company sold its Canadian retail and manufacturing operations to Sobeys Inc.

Cerberus acquired Albertson’s from Supervalu Inc. in March 2013.