Acquiring Albertsons
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Albertsons and Kroger have identified which stores they would sell off to C&S Wholesale Grocers if a merger deal goes through.
Kroger announced it would purchase Boise-baed Albertsons in 2022. The companies are hoping to get regulatory approval and face three separate challenges in the coming months.
As part of the plan, in a bid to ease anti-trust concerns, Kroger and Albertsons said they would spin off 579 stores to smaller company C&S Wholesale Grocers.
The companies had previously refused to say which stores would be spun off, but provided information Tuesday with specifics.
In Idaho, Albertsons Companies currently owns 44 stores – 37 Albertsons-branded locations and seven Safeway supermarkets. The plan calls for ten of those to be transferred to C&S, with six in Boise, and one each in Meridian, Nampa, Pocatello and Twin Falls.
Notably, Kroger elected not to spin off any of its Fred Meyer-branded stores, including the six in Idaho. If the deal goes through, it will continue to own and operate those stores, as well as the 34 remaining Albertsons and Safeway stores.
A number of notable Idaho stores, including the store on the site of Joe Albertsons’ first market at 17th St. and State St., the large Albertsons MarketStreet location in Meridian and the upgraded 1219 S. Broadway store would be sold to Kroger.
It’s unclear what branding the stores divested in Idaho would carry. An April news release indicates a number of stores would change names, but the plan for Idaho stores isn’t clear from the release, except that they would no longer be called Albertsons. C&S would take control of several brand names, including QFC from Kroger, and Mariano’s, Carrs and Haggen from Albertsons. It also owns the Piggly Wiggly and Grand Union brands.
Separately, BoiseDev broke news that Boise Albertsons executive Susan Morris would lead C&S’ retail division if the deal goes through.
Here are the Albertsons locations that would be sold to C&S:
- 10500 W. Overland Rd., Boise (Five Mile Plaza)
- 5100 W. Overland Rd., Boise (Hillcrest Shopping Center)
- 909 E. ParkCenter Blvd., Boise (South Shore Shopping Center)
- 4700 N. Eagle Rd., Boise
- 6560 S. Federal Way, Boise (Columbia Marketplace)
- 3614 W. State St., Boise
- 20 E. Fairview Ave., Meridian (Cherry Plaza)
- 2400 12th Ave Rd., Nampa
- 330 E. Benton St., Pocatello
- 1221 Addison Ave E, Twin Falls
Here’s the full list of stores, distribution centers and plants that would be divested.
The deal faces three separate court actions—by the Federal Trade Commission, the State of Washington, and the State of Colorado. Hearings on preliminary injunctions in each of the three cases are slated to start in August and run through September. Kroger and Albertsons would likely need to win each of the cases in order to get the deal done before an October breakup deadline, as BoiseDev reported. Albertsons could walk away from the deal in October with a $ 600 million breakup fee in its corporate pocket unless it agrees to extend the timeline.