Cerberus Capital Management has signed an agreement to take Safeway (NYSE: SWY) private for about $40 per share. The deal's total price wasn't announced, but is estimated to be worth about $9.4 billion. Cerberus plans to buy Safeway through the holding company that houses several Albertson's stores, which the firm acquired last March from Supervalu (NYSE: SVU) for about $3.3 billion.
The combined grocery juggernaut will control more than 2,400 stores, 27 distribution facilities and 20 manufacturing facilities, employing about 250,000. No locations are expected to be closed as part of the deal, which is expected to close in the fourth quarter. Kroger (NYSE: KR), a rival grocery chain that had been mulling an offer for Safeway, could still bid for the company, since Cerberus' agreement includes a go-shop provision.