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CHICAGO — Safeway Inc. has sold 11 of its Dominick’s supermarkets here to Roundy’s Inc. in a $36 million cash and lease assumption transaction.
Safeway Inc. has sold 11 of its Dominick’s supermarkets here to Roundy’s Inc. in a $36 million cash and lease assumption transaction.
The stores include three in Chicago, and one apiece in Park Ridge, Western Springs, Northfield, Westchester, Buffalo Grove, Gurnee, Aurora and Shorewood.
Safeway, which announced its exit from greater Chicago this fall, earlier sold four Dominick’s units to New Albertsons Inc., which operates the Jewel-Osco chain.
Safeway had 72 Dominick’s outlets when it announced its departure from the market. It has reported seeing "significant interest" in Dominick’s assets.
Milwaukee-based Roundy’s, which will convert the acquired supermarkets to the Mariano’s banner, has been gaining ground in Chicago by targeting upscale communities with features such as in-store piano players.
"This acquisition is transformational in terms of Mariano’s expansion plans in the Chicago metropolitan area, allowing us to open 11 additional stores in 2014 in prime locations with great market demographics," said Roundy’s chairman, president and chief executive officer Robert Mariano. "These key locations will seamlessly integrate into and complement our existing base of 13 Mariano’s locations as well as our five additional 2014 Mariano’s locations now under construction."
Roundy’s expects to close the deal in the second half of December. The chain plans to fund the acquisition through a debt financing transaction, the proceeds of which will also be used to reduce the company’s debt under its first lien credit facility.
