safeways

Rumored PE Interest Mega Deal for Grocery Stores

by

October 31, 2013

A Reuters report sparked the rumor that grocery retail chain, Safeway, may be the target of PE buyout funds. In an exclusive report it cited undisclosed sources who said that a “handful” of buyout firms, including Cerberus Capital Management, are exploring a deal for all or part of supermarket chain.

 

If it goes through the deal could shape up to be one of the largest leveraged buyouts since the financial crisis, according to Reuters, explaining that Safeway is the second-largest grocery store operator in the US and its market cap is USD 8 billion, which makes it this week’s deal of the week.

 

The only PE fund mentioned by name in the report was Cerberus Capital. Safeway is undergoing some restructuring. It announced last week that Canada’s Competition Bureau has entered into a consent agreement with Sobeys, a major Canadian retailer, to sell the net assets of Canada Safeway.

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