Fleming (NYSE:FLM) on Friday (5 Januray) announced that Safeway Inc. (NYSE:SWY) has agreed to purchase 11 ABCO Desert Markets located in Tucson and Phoenix, Arizona.
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The transaction should be finalized in early March 2001.
The ABCO Desert Markets are being sold as part of Fleming’s previously announced strategic plan that focuses on its growth areas of value retail and distribution. “Safeway is adding some excellent retail stores and ABCO customers will continue to receive exceptional customer service,” said Mark Hansen, chairman and CEO of Fleming.
The agreement with Safeway includes a total of 11 stores, with seven in Tucson and four in Phoenix. With the completion of the applicable waiting period under the Hart-Scott-Rodino Antitrust Act, the sale will be finalized in accordance with normal closing conditions.
Fleming is in various phases of discussions to sell the 42 remaining ABCO Desert Markets and 24 Sentry stores to multiple retailers, and recently announced the sale of the Baker’s chain to Kroger. The company expects to receive approximately $200 million in proceeds in 2001 from the sale of conventional retail stores as well as retention of a significant portion of the wholesale distribution to these stores.
Fleming is a $15 billion company and industry leader in distribution and has a growing presence in value retailing. Fleming’s primary business is buying and selling merchandise. The company serves approximately 3,000 supermarkets, including more than 800 North American stores of global supermarketer IGA, franchises of Piggly Wiggly and other regional banners, 3,000 convenience stores and nearly 1,000 supercenters, discount, limited assortment, drug, specialty, e-tailers and other businesses across the country.
- This release includes statements that:
- (a) predict or forecast future events or results,
- (b) depend on future events for their accuracy, or
- (c) embody projections and assumptions which may prove to have
been inaccurate, including expectations for years 2000 and beyond.
These projections, forward-looking statements and the company’s business and prospects are subject to a number of factors which could cause actual results to differ materially, including: adverse effects of the changing industry environment and increased competition, sales declines and loss of customers, exposure to litigation and other contingent losses, failure to implement strategic initiatives according to plan or to achieve the expected results of such plan, failure of the company to achieve necessary cost savings, and negative effects of the company’s substantial indebtedness and the limitations imposed by restrictive covenants contained in the company’s debt instruments. These and other factors are described in the company’s periodic reports available from the Securities and Exchange Commission.
