Boise, Idaho-based Albertsons, Inc. – one of the world’s largest food and drug retailers – yesterday announced that it will acquire JS USA Holdings, Inc., which operates under the banners of Shaw’s and Star Markets, for the purchase price of $2.475 billion.
Shaw’s, the 11th largest supermarket company in the country, is a subsidiary of J Sainsbury plc. Included in the purchase price is approximately $368 million of capital lease assumption, Albertsons said in a statement.
“We are excited about welcoming Shaw’s and their 30,000 associates to the Albertsons family of world-class grocery banners,” said Larry Johnston, chairman, CEO and president of Albertsons, in the statement. “This acquisition will extend our national footprint into Massachusetts, Connecticut, Rhode Island, Vermont, New Hampshire and Maine, bringing our total national market presence to more than 2,500 stores in 37 states.”
The purchase of Shaw’s is expected to be additional to 2004 expected earnings of $1.30 to $1.40 per share, Albertsons said. After closing, the company will announce specific details of the transaction.
Albertsons said it expects to use a combination of equity, debt and cash on hand to finance the acquisition, plus the assumption of approximately $368 million in capital leases. The closing is subject to terms and conditions including government approval, the company said. The transaction is expected to take place in the second quarter of 2004. Banc of America Securities LLC served as financial advisor to Albertsons for this transaction.
Albertsons employs about 200,000 employees and operates more than 2,300 retail stores in 31 states, under banners including Albertsons, Jewel-Osco, Acme, Albertsons-Osco, Albertsons-Sav-on, Sav-on Drugs, Osco Drug, and Super Saver, the company said.
