BOISE, Ida. -- Albertson's Inc. said Monday it has signed a definitive agreement to buy 74 Jewel Osco combination food and drug stores from American Stores Co. for more than $300 million.
The deal, first announced on Jan. 28, includes stores in Texas, Oklahoma, Florida and Arkansas and a general merchandise warehouse in Ponca City, Okla.
Albertson's, of Boise, Ida., said it expects to close the deal in April. It said the one-time costs associated with the transaction will be recognized in the quarter in which it closes.
Albertson's, the nation's sixth largest operator of retail food-drug stores with 562 outlets in 17 states, has annual sales of about $11 billion.
American Stores Co., of Salt Lake City, said it lacked adequate distribution facilities in the area and had decided to sell the stores to use its resources in 'more profitable' markets.
The company said the sale is consistent with its strategy of recent years to divest underperforming stores while concentrating on markets with good performance and strong market shares.
American Stores said the proceeds from the deal, net of retained current liabilities and taxes, are expected to exceed $300 million, which will be used to reduced long-term debt.
American Stores operates more than 1,000 supermarkets and combination grocery-drug stores and 478 drug stores under the names Acme Markets, Jewel Food Stores, Star Market, Lucky Stores, Osco Drug and Sav-on. Its annual sales are more than $20 billion.
