MILWAUKEE – Roundy’s Inc. on Monday announced it has signed a
definitive agreement to acquire 11 Dominick’s stores from
Safeway Inc. in a $36 million cash and lease assumption
The stores will be converted to Mariano’s Fresh Market, which is
Roundy’s banner in Illinois.
“This acquisition is transformational in terms of Mariano’s
expansion plans in the Chicago metropolitan area, allowing us to
open 11 additional stores in 2014 in prime locations with great
market demographics,” said Robert Mariano, chairman, president
and chief executive officer of Roundy’s. “These key locations
will seamlessly integrate into and complement our existing base
of 13 Mariano’s locations as well as our five additional 2014
Mariano’s locations now under construction.”
The transaction is expected to close in the second half of
December, according to a company statement. There will be a
transition period of one to two months when Milwaukee-based
Roundy’s will take possession of the stores and convert them to
their Mariano’s banner.
According to the statement, Roundy’s plans to fund the
acquisition through a debt financing transaction, and the
proceeds will also be used to reduce the company’s debt under
its first lien credit facility.
To help fund Mariano’s growth, Roundy’s will suspend its
quarterly dividend until further notice, the statement said.