Albertson's, Inc. To Acquire Buttrey Food And Drug Stores Company.BOISE, Idaho--(BUSINESS WIRE)--Jan. 20, 1998--Albertson's, Inc. (NYSE NYSE See: New York Stock Exchange :ABS) announced today that it has entered into a definitive agreement whereby Albertson's will acquire Buttrey Food and Drug Stores Company (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :BTRY BTRY Battery BTRY Battery, Field Artillery ) for $15.50 per share. Buttrey is headquartered in Great Falls, Montana Great Falls is a city located in Cascade County, Montana, United States. As of the 2000 census, the city had a total population of 56,690. It is the county seat of Cascade CountyGR6 and is a leading supermarket and pharmacy retailer operating 43 stores in Montana, North Dakota North Dakota, state in the N central United States. It is bordered by Minnesota, across the Red River of the North (E), South Dakota (S), Montana (W), and the Canadian provinces of Saskatchewan and Manitoba (N). and Wyoming. The agreement calls for a wholly-owned subsidiary of Albertson's to commence a cash tender offer at $15.50 per share no later than Monday, January 26, 1998, for all Buttrey outstanding shares. The offer will be subject to regulatory approval and certain conditions, including the tender of a majority of the Buttrey shares. Financing is not a condition. Following the consummation of the offer, Albertson's subsidiary will be merged with Buttrey and any remaining shares will be converted into the right to receive $15.50 per share in cash. The transaction was unanimously approved by the board of directors of Buttrey. As a part of this transaction, the Buttrey shareholder owning a majority of the outstanding Buttrey stock has agreed to tender promptly all its Buttrey shares and has granted Albertson's an option to purchase all its Buttrey shares under certain circumstances. "This announcement marks our second acquisition in as many weeks and is another important step in our acquisition strategy. We will continue to pursue opportunities that allow us to strengthen our market presence in existing markets or efficiently enter new markets," said Mr. Gary Michael, Chairman and Chief Executive Officer of Albertson's. "This transaction will yield both strategic and financial benefits as we continue our program to accelerate top-line growth, increase profitability and enhance shareholder value. We are joining together two companies with complementary strengths and a shared commitment to providing customers with high-quality products at a good value with top-notch service. "We will be obtaining an outstanding retailer with quality stores in excellent locations. From a strategic standpoint, this transaction will strengthen our market presence in Montana, North Dakota and Wyoming, especially in many of the smaller towns where Albertson's does not currently operate. "From a financial standpoint, we expect to realize synergies in our combined purchasing power Purchasing Power 1. The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Purchasing power is important because, all else being equal, inflation decreases the amount of goods or services you'd be able to purchase. 2. , distribution efficiencies, and merchandising and systems opportunities. These synergies will enable us to build from the solid sales and earnings base that Buttrey has created. "We look forward to welcoming the well-trained, motivated and loyal employees of Buttrey. Their commitment to customer service is a great fit with the Albertson's employees who deliver the same outstanding service to over 700 million customers a year," Mr. Michael concluded. Albertson's, Inc. is one of the largest retail food-drug chains in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . The Boise, Idaho “Boise” redirects here. For other uses, see Boise (disambiguation). Boise is the capital and most populous city of the U.S. state of Idaho. It is the county seat of Ada County and the principal city of the Boise metropolitan area. based company currently operates 866 retail stores in 20 Western, Midwestern and Southern states. The tender offer would be made only pursuant to an offer to purchase and related documents to be filed with the Securities and Exchange Commission. Forward-looking statements in this news release, if any, are not updated to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking information. Assumptions and other information that could cause actual results to differ from those set forth in the forward-looking information can be found in the Company's Form 10-Q Form 10-Q See 10-Q. . CONTACT: Albertson's, Inc., Boise, Idaho Investor Relations Investor relations The process by which the corporation communicates with its investors. A. Craig Olson 208/395-6284 Renee Bergquist 208/395-6622 News Media 208/395-6392 Mike Read Jenny Enochson |
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