DALLAS, Jan. 5 /PRNewswire/ -- Fleming (NYSE: FLM) today announced that
Safeway Inc. (NYSE: SWY) has agreed to purchase 11 ABCO Desert Markets located
in Tucson and Phoenix, Arizona. The transaction should be finalized in early
March 2001.
The ABCO Desert Markets are being sold as part of Fleming's previously
announced strategic plan that focuses on its growth areas of value retail and
distribution. "Safeway is adding some excellent retail stores and ABCO
customers will continue to receive exceptional customer service," said Mark
Hansen, chairman and CEO of Fleming.
The agreement with Safeway includes a total of 11 stores with 7 in Tucson
and 4 in Phoenix. With the completion of the applicable waiting period under
the Hart-Scott-Rodino Antitrust Act, the sale will be finalized in accordance
with normal closing conditions.
Fleming is in various phases of discussions to sell the 42 remaining ABCO
Desert Markets and 24 Sentry stores to multiple retailers and recently
announced the sale of the Baker's chain to Kroger. The company expects to
receive approximately $200 million in proceeds in 2001 from the sale of
conventional retail stores as well as retention of a significant portion of
the wholesale distribution to these stores.
Fleming is a $15 billion company and industry leader in distribution and
has a growing presence in value retailing. Fleming's primary business is
buying and selling merchandise. The company serves approximately
3,000 supermarkets including more than 800 North American stores of global
supermarketer IGA, franchises of Piggly Wiggly and other regional banners,
3,000 convenience stores and nearly 1,000 supercenters, discount, limited
assortment, drug, specialty, e-tailers and other businesses across the
country.
This release includes statements that:
(a) predict or forecast future events or results,
(b) depend on future events for their accuracy, or
(c) embody projections and assumptions which may prove to have been
inaccurate, including expectations for years 2000 and beyond.
These projections, forward-looking statements and the company's business
and prospects are subject to a number of factors which could cause actual
results to differ materially, including: adverse effects of the changing
industry environment and increased competition, sales declines and loss of
customers, exposure to litigation and other contingent losses, failure to
implement strategic initiatives according to plan or to achieve the expected
results of such plan, failure of the company to achieve necessary cost
savings, and negative effects of the company's substantial indebtedness and
the limitations imposed by restrictive covenants contained in the company's
debt instruments. These and other factors are described in the company's
periodic reports available from the Securities and Exchange Commission.
CONTACTS:
(Media) Randy Hatcher 972.906.8823
(Investors) Alan McIntyre 972.906.8126
SOURCE Fleming
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Related links:
http://www.fleming.com
CONTACT:
media, Randy Hatcher, +1-972-906-8823, or
investors, Alan McIntyre, +1-972-906-8126, both of Fleming
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