Albertson's Sells Tulsa Distribution Center to Fleming, Secures Supply Arrangement
BOISE, Idaho - Albertson's Inc. announced today that it has entered into an agreement to sell its Tulsa distribution facility to Fleming Companies Inc. The sales agreement with Fleming also includes a long-term supply arrangement under which Fleming will provide procurement and distribution services for Albertson's Oklahoma and Nebraska stores.
"Our recent decision to exit several markets served by the Tulsa distribution center created an opportunity for Albertson's and Fleming to work together. Fleming is a highly regarded wholesaler and this transaction allows us to both maximize shareowner value and increase supply chain efficiency," said Larry Johnston, Albertson's chairman and CEO.
Mark Hansen, Fleming's chairman and CEO, said, "Self-distributing retailers are looking critically at their supply chains to identify the most efficient alternatives. We believe this agreement is a confirmation of the advantages provided by Fleming's nationwide footprint of distribution facilities.
"The arrangement with Albertson's supports our strategy to further diversify our customer base and makes Albertson's one of our five largest customers," Hansen added.
Albertson's also announced plans to close its Houston distribution facility following the recent decision to exit the Houston and San Antonio markets. The company's Dallas/Ft. Worth distribution center will support the procurement and distribution needs of the Houston and San Antonio stores until their final disposition.
"Our recent decision to exit several markets served by the Tulsa distribution center created an opportunity for Albertson's and Fleming to work together. Fleming is a highly regarded wholesaler and this transaction allows us to both maximize shareowner value and increase supply chain efficiency," said Larry Johnston, Albertson's chairman and CEO.
Mark Hansen, Fleming's chairman and CEO, said, "Self-distributing retailers are looking critically at their supply chains to identify the most efficient alternatives. We believe this agreement is a confirmation of the advantages provided by Fleming's nationwide footprint of distribution facilities.
"The arrangement with Albertson's supports our strategy to further diversify our customer base and makes Albertson's one of our five largest customers," Hansen added.
Albertson's also announced plans to close its Houston distribution facility following the recent decision to exit the Houston and San Antonio markets. The company's Dallas/Ft. Worth distribution center will support the procurement and distribution needs of the Houston and San Antonio stores until their final disposition.