Pleasanton, Calif. -- Safeway Inc. is exiting the Philadelphia market. The company announced it has reached a definitive agreement to sell 16 of its Genuardi's stores in the greater Philadelphia area to Giant Food Stores, LLC, a division of Ahold USA.
The deal is valued at $106 million.
In addition, Safeway plans to close three Genuardi's stores and sell the remaining eight Genuardi's stores, which it will continue to operate while it is working with potential buyers.
"We have made the decision to exit the greater Philadelphia market, including four stores in New Jersey , and focus our resources in those operating areas where we have a stronger presence," said Steve Neibergall, president of Safeway's Eastern Division. "We will be working with the purchasers to ease the transition for our store employees and making efforts to facilitate continued employment for as many of them as possible."
Giant Food Stores, a division of Royal Ahold NV, has agreed to acquire 16 Genuardi’s stores from Safeway Inc. for $106 million to expand in the greater Philadelphia area.
The outlets will be converted into Giant Food Stores after completion of the transaction, which is expected to take place in the first half of 2012, Ahold said in a statement.