Add-on Acquisition • Retail

Safeway Acquires Randall s Food Markets

On July 23, 1999, Safeway acquired retailer Randall s Food Markets from KKR for 1.4B USD

Acquisition Context
  • This is Safeway’s 3rd transaction in the Retail sector.
  • This is Safeway’s 3rd largest (disclosed) transaction.
  • This is Safeway’s 3rd transaction in the United States.
  • This is Safeway’s 1st transaction in Texas.

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M&A Deal Summary

Date July 23, 1999
Target Randall s Food Markets
Sector Retail
Buyer(s) Safeway
Sellers(s) KKR
Deal Type Add-on Acquisition
Deal Value 1.4B USD

Target Company

Randall s Food Markets

Houston, Texas, United States
Randall's Food Markets, Inc. a privately owned 116 store Texas-based supermarket chain, operates 46 Randalls stores in the Houston area, 12 stores in Austin and 58 Tom Thumb stores in the Dallas/Ft. Worth area.
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Buyer Overview 1

Buyer

Safeway

Pleasanton, California, United States

Category Company
Founded 1926
Sector Retail
Employees138,000
Revenue 36.1B USD (2013)
DESCRIPTION

Safeway Inc., which operates Safeway, Vons, Pavilion’s, Randall’s, Tom Thumb, and Carrs stores, is a Fortune 100 company and one of the largest food and drug retailers in the United States with sales of $36.1 billion in 2013. The company operates 1,335 stores in 20 states and the District of Columbia, 13 distribution centers and 20 manufacturing plants.


Deal Context for Buyer #
Overall 3 of 6
Sector: Retail 3 of 6
Type: Add-on Acquisition 3 of 6
State: Texas 1 of 1
Country: United States 3 of 6
Year: 1999 1 of 2
Size (of disclosed) 3 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
1998-10-13 Dominick s Supermarkets

Northlake, Illinois, United States

Dominick's Supermarkets, Inc is a grocery store chain it provides products like Bakery, dairy, deli, frozen foods, general grocery, meat, pharmacy, produce, seafood, snacks, liquor.

Buy $1.8B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
1999-08-07 Carr-Gottstein Foods Co.

Anchorage, Alaska, United States

Carr-Gottstein Foods Co. is a grocery retailer serving the state of Alaska.

Buy $330M

Seller Profile 1

SELLER

KKR

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1976
PE ASSETS 267.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION
KKR's office in Menlo Park, California.
KKR's office in Menlo Park, California.

KKR is a global investment firm founded by Jerome Kohlberg, Henry Kravis, and George Roberts. The Firm is separated into several business segments including private markets, public markets, capital markets, and other principal activities. KKR's private equity practice invests in management buyouts, take privates, corporate divestitures, industry consolidations, and partnerships with family-owned companies. KKR will invest in a broad range of industries and companies and will consider businesses throughout North America, Europe, Asia, and Australia/New Zealand. Sectors of interest include chemicals, consumer products, energy and natural resources, financial services, healthcare, industrial, media/communications, retail, and technology. In addition to its traditional principal investment activity business, KKR also invests in infrastructure assets. KKR was formed in 1976 and is based in New York, New York.


Deal Context for Seller #
Overall 7 of 215
Sector: Retail 2 of 9
Type: Add-on Acquisition 2 of 69
State: Texas 1 of 11
Country: United States 7 of 94
Year: 1999 1 of 1
Size (of disclosed) 25 of 40
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
1998-07-31 MedCath

Charlotte, North Carolina, United States

MedCath Corp. is a developer, owner and operator of hospitals in partnership with cardiologists and cardiovascular surgeons.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
1999-10-01 Wincor Nixdorf AG

Paderborn, Germany

Wincor Nixdorf is a provider of IT solutions and services to retail banks and the retail industry. The main focus of the group's comprehensive portfolio lies on business process optimization, especially in the branch operations of both sectors. The company also places great importance on building close relationships with sales partners that have an excellent knowledge of the local requirements and conditions on the customer side.

Buy $800M