Haggen to Take Over Vons, Albertsons in Los Angeles

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Pacific Northwest grocery chain Haggen Food & Pharmacy will buy 28 Albertsons, Pavilions and Vons stores located in Los Angeles, part of a divestment process sparked by the merger of grocers Albertson’s and Safeway.

Haggen announced Friday that it has entered into an agreement to acquire a total of 146 stores in the Western U.S. as part of the divestment process brought about by the Federal Trade Commission’s review of the merger.

With this acquisition, which remains subject to FTC approval, Haggen will expand from 18 stores with 16 pharmacies to 164 stores with 106 pharmacies. The company will hire 8,000 new employees as it expands from a regional grocer to national chain with locations in Washington, Oregon, California, Nevada and Arizona, the company said in a statement.

Haggen will continue to be led by John Clougher and Bill Shaner, the company’s two chief executives.

If the acquisition is approved, Haggen will convert all of the acquired Albertsons and Safeway stores to the Haggen banner in phases during the first half of 2015. All Albertson’s and Safeway store employees will have the opportunity to become employees of Haggen, the company said.

Unified Grocers Inc. in Commerce, the largest wholesale grocery distributor in the western United States, announced simultaneously that it will be the primary supplier for all of Haggen’s newly acquired stores in California, Nevada and Arizona and will be a substantial supplier for the Oregon and Washington stores. Additionally, Unified’s Market Centre subsidiary will supply specialty products for all the acquired stores.

This agreement represents about $750 million in annual new business, Unified said in a statement.

Haggen announced Friday that it has entered into an agreement to acquire a total of 146 stores in the Western U.S. as part of the divestment process brought about by the Federal Trade Commission’s review of the merger.

With this acquisition, which remains subject to FTC approval, Haggen will expand from 18 stores with 16 pharmacies to 164 stores with 106 pharmacies. The company will hire 8,000 new employees as it expands from a regional grocer to national chain with locations in Washington, Oregon, California, Nevada and Arizona, the company said in a statement.

Haggen will continue to be led by John Clougher and Bill Shaner, the company’s two chief executives.

If the acquisition is approved, Haggen will convert all of the acquired Albertsons and Safeway stores to the Haggen banner in phases during the first half of 2015. All Albertson’s and Safeway store employees will have the opportunity to become employees of Haggen, the company said.

Unified Grocers Inc. in Commerce, the largest wholesale grocery distributor in the western United States, announced simultaneously that it will be the primary supplier for all of Haggen’s newly acquired stores in California, Nevada and Arizona and will be a substantial supplier for the Oregon and Washington stores. Additionally, Unified’s Market Centre subsidiary will supply specialty products for all the acquired stores.

This agreement represents about $750 million in annual new business, Unified said in a statement.

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