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AMERICAN STORES CO. ANNOUNCES COMPLETION OF SALE OF 74 JEWEL OSCO STORES

AMERICAN STORES CO. ANNOUNCES COMPLETION OF SALE OF 74 JEWEL OSCO STORES
 SALT LAKE CITY, April 13 /PRNewswire/ -- American Stores Co. (NYSE: ASC) announced today that it has completed the sale of 74 Jewel Osco combination food and drug stores and a general merchandise warehouse to Albertson's Inc. (NYSE: ABS). Proceeds from the sale, net of retained current liabilities and taxes, are approximately $325 million, which will be used to reduce long-term debt, consistent with the company's intention to reduce debt over time. The 74 stores are located in Texas, Oklahoma, Arkansas and Florida and the warehouse is located in Ponca City, Okla. These facilities constitute all of the company's operations in Texas, Oklahoma and Florida.
 The sale price for the business approximated the book value of the assets. Because of costs incidental to the sale, the company expects to show a loss on the transaction of less than $20 million. The company reported that the divested operations had sales of approximately $1.45 billion and a pre-LIFO operating loss of $18 million for fiscal year 1991. The company also noted that the operations would not be profitable for the first quarter of fiscal year 1992. When the company announced its intention to sell these stores on Jan. 28, 1992, J.L. Scott, president and co-chief executive officer of American Stores Co., noted that the sale of these stores is consistent with the company's strategy started several years ago of divesting stores that are underperforming while concentrating on markets with good performance and strong market shares.
 American Stores Co. is a holding company with 1991 sales of $20.1 billion. Its three principal wholly owned subsidiaries are:
 -- Jewel Companies Inc., which operates Acme Markets Inc., Jewel Food Stores Inc. and Star Markets;
 -- Lucky Stores Inc. in California and Nevada; and,
 -- American Drug Stores Inc., which operates Osco Drug and Sav-on Drug.
 After the sale of the 74 Jewel Osco stores, the company's grocery and combination store subsidiaries will operate 939 stores and American Drug Stores will operate the drug side of 151 combination stores and 475 stand-alone drug stores.
 -0- 4/13/92
 /CONTACT: Troy D'Ambrosio or Cal Drecksel of American Stores, 801-539-0112/
 (ASC ABS) CO: American Stores Co.; Albertson's Inc. ST: Utah IN: REA SU: TNM


KJ-JL -- LA022 -- 7878 04/13/92 15:19 EDT
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Publication:PR Newswire
Date:Apr 13, 1992
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