Schulte Advises on the $9.2-Billion Merger of the Safeway Grocery Store Chain

Schulte advised Albertsons Companies and an investor group led by Cerberus Capital Management LP in the $9.2-billion merger of Safeway Inc., the second largest traditional supermarket in the U.S. The merger was approved by Safeway shareholders at the company’s annual meeting on July 25, 2014. Announced in March of 2014, the deal closed on Jan. 30, 2015. It follows Albertsons Companies’ $3.3-billion acquisition from SUPERVALU INC. of its Albertsons, Acme, Jewel-Osco, Shaw’s and related Osco and Sav-on in-store pharmacies. The firm also advised Albertsons on the acquisition of United Supermarkets. The resulting company will have approximately 2,230 grocery stores, 27 distribution facilities and 19 manufacturing plants and employ more than 250,000 people. The transaction included $1.25 billion of equity financing and $7.0 billion of debt financing raised to fund the acquisition and to refinance existing debt.

The team was led by mergers & acquisitions partner Stuart D. Freedman, tax partner Alan S. Waldenberg, mergers & acquisitions partner Robert B. Loper, real estate partner Jeffrey A. Lenobel, finance partner Ronald B. Risdon and tax partner Noah D. Beck. The team also included antitrust partner Michael E. Swartz and special counsel Michael G. Cutini; litigation partner Howard O. Godnick; employment & employee benefits partners Ronald E. Richman and Ian L. Levin, special counsel Scott A. Gold and associate Frank P. Sabatini; real estate special counsel Seth R. Henslovitz; and former Schulte lawyers Matthew Gruenberg and Jae Y. Kim.