FINANCE

Albertson’s Agrees to $9.5 Billion Sale

BY CSA STAFF

New York City, Albertson’s has agreed to be sold to a group of buyers led by SuperValu Inc. and CVS Corp. for about $9.5 billion in stock and cash, ending an intense auction that only weeks before had fallen apart. The group, which also includes Cerberus Capital Management LP and Kimco Realty Corp., will split the company into three parts.

The deal is a significant leap forward for Eden Prairie, Minn.-based SuperValu, which will shoulder most of the transaction and become the second-largest supermarket company in the United States after Kroger. Under the terms of the agreement, SuperValu said it would buy 1,124 stores from Albertson’s for an estimated $12.4 billion in cash and stock. The amount includes $6.1 billion of Albertson’s debt.

CVS, for its part, will buy 700 freestanding Sav-On and Osco pharmacies and a distribution center from Albertson’s for $2.93 billion. The investor group led by hedge fund Cerberus Capital Management and including Kimco Realty, Schottenstein Realty, Lubert-Adler Partners and Klaff Realty will buy 655 Albertson’s and Super Saves stores and a number of distribution centers. The group plans to operate the stores under the Albertson’s name.

The deal values Albertson’s at $26.29 a share, a 9% premium based on Friday’s closing stock price. The total transaction value is estimated at $17.4 billion, including debt.

The boards of SuperValu, CVS and Albertson’s, as well as the investment committees or equivalents of the Cerberus-led group, have approved the transaction.

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DSW Expands Management Team

BY CSA STAFF

Columbus, Ohio, DSW Inc. announced the promotion of two key executives and named two new officers as part of an ongoing initiative to position the company for continued growth and increased profitability.

Deborah Ferree, who joined DSW in 1997 and has held several executive positions, was promoted from president to vice chair. She will continue in her role as chief merchandising officer. Peter Horvath, who joined the firm in January 2005 as executive VP and COO, was promoted to president.

Additionally, Kevin Lonergan was named as executive VP and COO. He is a former executive VP and COO of Old Navy, a division of Gap.

The company also named William Jordan as VP and general counsel. He most recently served as corporate counsel for Lancaster County Corp.

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Executive Changes at Charming Shoppes

BY CSA STAFF

Bensalem, Pa., Charming Shoppes promoted Diane M. Paccione to group divisional president, a newly created executive management position in which she will have responsibility for the company’s Fashion Bug and Catherine Plus Sizes brands. Paccione will also serve as president of Fashion Bug, and will be responsible for the day-to-day operations of the brand. Paccione replaces Elizabeth Wilson as president of Fashion Bug. Wilson is leaving the company to pursue other interests.

The retailer also announced that LuAnn Via has joined Charming Shoppes as the president of Catherines Plus Sizes and a member of the company’s executive leadership team. Via will have direct responsibility for the day-to-day operations of the Catherines Plus Sizes brand.

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