Supervalu, CVS buy Albertson's

Dairy Foods, Feb, 2006

Albertson's Inc., has agreed to be sold for about $9.8 billion in cash and stock to a group led by Supervalu Inc. and CVS Corp. Idaho-based Albertson's said last month the transaction is valued at $17.4 billion.

Albertson's, the second-largest U.S. grocery company with chains including Acme and Jewel-Ocso, has lost sales to upscale and discount grocers and seen Wal-Mart Inc. move into many of its markets. Minnesota-based Supervalu, owner of the Save-A-Lot and Shop 'n Save discount chains, will become a major player in the grocery business as it adds more than 1,100 stores in urban markets such as Chicago. The deal will give CVS, which bought 1,100 Eckerd locations in July 2004, 700 more outlets mostly in California, the largest U.S. market.