Albertsons owners to buy Tom Thumb, other Safeway grocers - Dallas News | myFOXdfw.com

Albertsons owners to buy Tom Thumb, other Safeway grocers

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Safeway, parent company of grocer Tom Thumb, has agreed to be acquired by an investment group led by Cerberus Capital Management, owner of Albertsons and several other supermarket chains.

The deal is worth about $7.64 billion in cash, and pending other transactions could top more than $9 billion.

It comes amid ongoing consolidation in the supermarket industry, which faces growing competition from big-box retailers, specialty chains, drug stores and even dollar stores.

Cerberus bought five chains, including Albertsons, from Supervalu last year. Kroger also recently snapped up regional chain Harris Teeter. Albertsons purchased Lubbock-based United Supermarkets last year as well, which has Market Street grocery stores in North Texas.

The Pleasanton, Calif.-based Safeway has more than 1,300 U.S. locations under banners that include Randall's and Tom Thumb.

The new combined company will have the largest market share of any traditional grocer in North Texas.

Safeway shareholders will receive $32.50 per share in cash. Pending other deals, the company says the deal is worth roughly $40 per share to stockholders.

The Associated Press contributed to this report.

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