search query: @indexterm Management buy-outs / total: 202
reference: 121 / 202
| Author: | Magowan, P.A. |
| Title: | The case for LBOs: the Safeway experience *SAFEWAY |
| Journal: | California Management Review
1989 : FALL, VOL. 32:1, p. 9-19 |
| Index terms: | MANAGEMENT BUY-OUTS STRATEGIC MANAGEMENT |
| Language: | eng |
| Abstract: | In early 1986, Safeway was reporting record results in sales and net income for the previous year. Nevertheless, the company was subjected to a hostile takeover attempt due partly to Safeway's status as the largest company in an industry that has become attractive to LBO firms. The history of this leveraged buyout is briefly reviewed. Cases of other food retailers are mentioned. The results of the Safeway's LBO are described and analyzed. Since the LBO the company sold some 1,200 stores, reduced its debt by 2.6 billion USD in two years, and improved the retail operating income over the record pre-LBO results. Safeway is now increasing its capital spending levels and has changed its focus from tactical to strategic. |
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