|
Meyer binges on groceries
|
 |
May 12, 1997: 6:24 a.m. ET
Fred Meyer chain to acquire Smith's Food & Drug for $720 million
|
NEW YORK (CNNfn) - Grocery store chain Fred Meyer has reached an agreement to acquire Smith's Food & Drug Centers Inc. in a stock deal worth about $720 million.
Meyer will also assume $1.3 billion of Smith's debt, the Wall Street Journal reported Monday. That debt comes mainly from Smith's leveraged recapitalization last year, which was performed by Yucaipa Cos., an investment firm which deals with grocery chains.
Yucaipa owns about 14 percent of Smith's stock, and will hold a 5 percent stake in the combined company.
Smith's shareholders will receive 1.05 shares of Fred Meyer for each share owned and the deal is valued at about $44 a share.
The new venture will cover a region from Washington state to Texas. The company will have a strong presence in Las Vegas, Salt Lake City (where Smith's is based) Phoenix, Portland and Seattle.
The combined firm will bring in about $6.8 billion in revenue and have 373 stores. About 75 percent of the company's business will be grocery-related.
|
|
|
|
|
|
Fred Meyer
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
