Hogan Lovells Advises Albertsons Senior Management in US$9 Billion Acquisition of Safeway

LOS ANGELES, 30 January 2015 – Hogan Lovells has advised senior management of grocery store chain Albertsons LLC in its US$9.2 billion acquisition of Safeway Inc. The deal, approved by the Federal Trade Commission on 27 January, brings together two of the largest grocery store chains in the United States.

The deal was backed by a financial group led by Cerberus Capital Management LP and funded by US$1.25 billion in equity contributions and cash, in addition to approximately US$7.6 billion in debt financing. Albertsons LLC will pay Safeway Inc. shareholders US$32.50 per share in cash and the Safeway Inc. shareholders have or will receive other payments from Safeway, which combined would total approximately US$40.00 per share. Additionally, the company is selling 168 stores to four buyers: Haggen Holdings LLC, Supervalu Inc., Associated Food Stores Inc., and Associated Wholesale Grocers, Inc.

Los Angeles Office Managing Partner Barry Dastin, along with Los Angeles Partner Russ Cashdan, Washington, D.C. Partner Carin Carithers and New York Partner Mark Weinstein, led the Hogan Lovells team. They represented Albertsons’ CEO Robert G. Miller and the other members of Albertsons’ senior management team in connection with the transaction, with respect to their equity ownership in the combined company and their executive compensation arrangements.

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