Safeway, Inc.’s Leveraged Buyout (A)

Case Solution

Karen H. Wruck, Steve-Anna Stephens
Harvard Business School ()

After years of deteriorating financial performance and erosion of market positions, Safeway, Inc., the largest public supermarket chain in the United States, has been the subject of a hostile takeover bid. Management decided to take the company private through a $ 4.3 billion leveraged buyout sponsored by Kohlberg Kravis and Roberts. This case begins with the controversy surrounding Safeway’s sale of the Dallas division as a result of the LBO and traces the events that led to the LBO. Ongoing discussion of management challenges in restructuring the company, including the renegotiation of non-competitive employment contracts and strong pressure in the capital markets (from hostile takeover bids) to relinquish control of the company.

We don‘t have the case solution, but we pay up to $50 for yours!

  • Set a reminder to receive an email after your university‘s case study deadline.
  • Upload your case study solution. We will review it for quality.
  • Get your money via PayPal or to your bank account.