Safeway Inc. (NYSE:SWY) announced today that it has completed its acquisition of the assets of Genuardi’s Family Markets, Inc. of Norristown, Pa. The acquisition is being accounted for as an asset purchase and was funded with proceeds from the sale of commercial paper. Safeway expects the transaction to be accretive in 2001.
Hank Mullany, formerly executive vice president and chief operations officer of Genuardi Family Markets has been named president of the Genuardi’s Division.
“We are pleased the acquisition is now complete,” said Safeway Chairman, President and Chief Executive Officer, Steve Burd. “Genuardi’s is a market leader with an outstanding reputation for quality and service. Bringing Genuardi’s into the Safeway family of companies presents us with a wide range of opportunities to improve our operations for our customers and to enhance shareholder value by reinforcing our position in the fast-growing Mid-Atlantic market.”
“Today we pass our legacy on to Safeway, one of the world’s finest food retailers known for innovation and leadership in meeting customers’ needs and exceeding their expectations”, said Charles A. Genuardi. “We believe our valued customers and employees will benefit greatly from this transaction.”
Genuardi’s Family Markets was a privately owned supermarket chain based in Norristown, Pa., with annual sales of approximately $1 billion. Genuardi’s has 39 stores in Pennsylvania, Delaware and New Jersey.
“I look forward to leading Genuardi’s into the future with Safeway,” said Hank Mullany. “Our local team remains ready to meet the needs of our customers and the communities we serve.”
Safeway Inc. is a Fortune 50 company and one of the largest food and drug retailers in North America with annualized sales of approximately $33 billion. The company now operates over 1,700 stores in the United States and Canada. The company now employs more than 200,000 people. The company’s stock is traded on the New York Stock Exchange under the symbol SWY.