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Title: |
Stock Purchase Agreement |
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Entities: |
Albertson’s, Inc.; Banc of America Securities LLC; Jones, Day, Reavis & Pogue; Sullivan & Cromwell |
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Date: |
2004 |
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Size: |
Preview shows 20KB of 221KB total |
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Price: |
$59 |
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ID: |
#330648 |
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STOCK PURCHASE AGREEMENT
AMONG
J SAINSBURY PLC,
JS USA HOLDINGS INC.
AND
ALBERTSON'S, INC.
DATED AS OF MARCH 25, 2004
{PAGE}
TABLE OF CONTENTS
{TABLE}
{CAPTION}
PAGE
----
{S} {C} {C}
ARTICLE I PURCHASE AND SALE; CLOSING................................. 1
1.1 Purchase and Sale............................................. 1
1.2 Purchase Price................................................ 1
1.3 Closing....................................................... 2
1.4 Deliveries by Purchaser....................................... 2
1.5 Deliveries by Seller and the Company.......................... 2
1.6 Intercompany Payables......................................... 3
ARTICLE II REPRESENTATIONS AND WARRANTIES REGARDING SELLER............ 3
2.1 Corporate Status.............................................. 3
2.2 Authority..................................................... 3
2.3 No Conflicts.................................................. 4
2.4 Ownership of Shares........................................... 4
2.5 Intercompany Payables at Closing.............................. 4
ARTICLE III REPRESENTATIONS AND WARRANTIES REGARDING THE COMPANY....... 4
3.1 Corporate Status, Etc......................................... 4
3.2 Capitalization................................................ 5
3.3 No Conflicts; Consents........................................ 6
3.4 Financial Statements.......................................... 7
3.5 Absence of Undisclosed Liabilities............................ 8
3.6 Events Subsequent to Latest Financial Statements.............. 9
3.7 Tax Matters................................................... 9
3.8 Litigation.................................................... 11
3.9 Compliance with Laws; Permits................................. 11
3.10 Employee Benefits............................................. 12
3.11 Labor Matters................................................. 14
3.12 Real Property................................................. 15
3.13 Tangible Personal Property.................................... 16
{/TABLE}
-i-
{PAGE}
TABLE OF CONTENTS
(continued)
{TABLE}
{CAPTION}
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{S} {C} {C}
3.14 Intellectual Property......................................... 16
3.15 Contracts..................................................... 18
3.16 Environmental Matters......................................... 19
3.17 Affiliate Transactions........................................ 20
3.18 Insurance..................................................... 20
3.19 Brokers....................................................... 20
ARTICLE IV REPRESENTATIONS AND WARRANTIES OF PURCHASER................ 21
4.1 Corporate Status.............................................. 21
4.2 Authorization, Etc............................................ 21
4.3 No Conflicts; Consents........................................ 21
4.4 Litigation.................................................... 21
4.5 Financial Ability to Perform.................................. 22
4.6 Brokers....................................................... 22
4.7 Investment Intent............................................. 22
ARTICLE V COVENANTS.................................................. 22
5.1 Conduct of the Company and the Company Subsidiaries........... 22
5.2 Filings; Other Actions; Notification.......................... 25
5.3 Access and Information........................................ 27
5.4 Audited Financial Statements.................................. 28
5.5 No Solicitation; Acquisition Proposals........................ 28
5.6 Publicity..................................................... 29
5.7 Employee Matters.............................................. 29
5.8 Operating Cash................................................ 30
5.9 Tax Matters................................................... 30
5.10 Seller Guaranties............................................. 35
5.11 Casualty; Condemnation........................................ 35
5.12 Insurance..................................................... 35
5.13 Intellectual Property Matters................................. 36
5.14 Noncompetition; No Solicitation............................... 37
{/TABLE}
-ii-
{PAGE}
TABLE OF CONTENTS
(continued)
{TABLE}
{CAPTION}
PAGE
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{S} {C} {C}
5.15 Release of Obligations........................................ 37
5.16 Cooperation with Purchaser's Financing Efforts................ 38
5.17 General Transitional Assistance............................... 38
ARTICLE VI CONDITIONS TO CLOSING...................................... 38
6.1 Conditions to the Obligations of Seller, Purchaser and
the Company................................................... 38
6.2 Conditions to the Obligation of Purchaser..................... 38
6.3 Conditions to the Obligation of Seller and the Company........ 39
ARTICLE VII INDEMNIFICATION............................................ 40
7.1 Survival; Effect of Materiality Qualifiers.................... 40
7.2 Indemnification of Purchaser by Seller........................ 40
7.3 Indemnification of Seller by Purchaser........................ 42
7.4 Procedures Relating to Indemnification........................ 42
7.5 Limitations on Indemnification................................ 44
7.6 Exclusive Remedy.............................................. 44
7.7 Indemnity Payments............................................ 44
7.8 Coordination with Tax Covenant................................ 44
7.9 Knowledge..................................................... 44
ARTICLE VIII TERMINATION................................................ 45
8.1 Termination................................................... 45
8.2 Effect of Termination......................................... 45
ARTICLE IX DEFINITIONS................................................ 46
9.1 Definition of Certain Terms................................... 46
ARTICLE X GENERAL PROVISIONS......................................... 54
10.1 Expenses...................................................... 54
10.2 Further Actions............................................... 55
10.3 Certain Limitations........................................... 55
{/TABLE}
-iii-
{PAGE}
TABLE OF CONTENTS
(continued)
{TABLE}
{CAPTION}
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{S} {C} {C}
10.4 Notices....................................................... 55
10.5 Binding Effect................................................ 56
10.6 Assignment; Successors; Third-Party Beneficiaries............. 56
10.7 Amendment; Waivers, Etc....................................... 57
10.8 Entire Agreement.............................................. 57
10.9 Severability.................................................. 57
10.10 Headings...................................................... 57
10.11 Counterparts.................................................. 57
10.12 Governing Law................................................. 57
10.13 Consent to Jurisdiction, etc.................................. 58
10.14 Equitable Relief.............................................. 58
10.15 Waiver of Punitive and Other Damages and Jury Trial........... 58
{/TABLE}
-iv-
{PAGE}
STOCK PURCHASE AGREEMENT (this "Agreement"), dated as of March 25,
2004, among J Sainsbury plc, a United Kingdom public limited company registered
under the laws of England and Wales (the "Seller"), JS USA Holdings Inc., a
Delaware corporation (the "Company"), and Albertson's, Inc., a Delaware
corporation ("Purchaser"). Capitalized terms used herein are defined in Article
IX.
R E C I T A L S:
WHEREAS, the respective boards of directors of each of Seller, the Company
and Purchaser have approved the execution and delivery of, and performance
under, this Agreement by such party, in each case upon the terms and subject to
the conditions set forth in this Agreement;
WHEREAS, Seller owns all of the issued and outstanding shares of common
stock, par value $.01 per share, of the Company (the "Shares");
WHEREAS, Seller, through the Company and Company Subsidiaries, is engaged
in the business of owning and operating retail grocery stores under the Shaw's
and Star banners in the United States (the "Business");
WHEREAS, Seller desires to sell to Purchaser and Purchaser desires to
purchase from Seller all of the Shares upon the terms and conditions contained
in this Agreement; and
WHEREAS, Seller, the Company and Purchaser desire to make certain
representations, warranties, covenants and agreements in connection with this
Agreement.
NOW, THEREFORE, in consideration of the premises and of the
representations, warranties, covenants and agreements set forth in this
Agreement, and subject to and on the terms and conditions set forth in this
Agreement, the parties hereto agree as follows:
ARTICLE I
PURCHASE AND SALE; CLOSING
1.1 Purchase and Sale. Upon the terms and subject to the conditions set
forth in this Agreement, Seller agrees to sell and transfer the Shares to
Purchaser, and Purchaser agrees to purchase the Shares from Seller, free and
clear of any Liens (the "Purchase").
1.2 Purchase Price. (a) Upon the terms and subject to the conditions of
this Agreement, at the Closing Purchaser shall pay Seller a net purchase price
of (i) $2,475,000,000 minus (ii) the net adjustment of $341,491,588 set forth on
Schedule 1.2 hereto (as such amount may be further adjusted pursuant to Section
1.2(b), the "Purchase Price"), by wire transfers of immediately available funds
as follows:
(i) First, to one or more accounts to be designated in writing by
Seller to Purchaser not less than two business days prior to the Closing
Date, the amount by which the Purchase Price exceeds the Loan Repayment
Amount; and
{PAGE}
(ii) Second, to one or more accounts to be designated in writing by
Seller to Purchaser not less than two business days prior to the Closing
Date, funds sufficient (collectively, the "Loan Repayment Amount") to
repay in full all outstanding principal and interest, and any other
amounts due and payable as of the Closing Date under, and to satisfy and
discharge all of the Company's and the Subsidiaries' obligations in
respect of, all outstanding loans, notes or other debt obligations of the
Company or the Subsidiaries, on the one hand, to Seller and its Affiliates
(other than the Company and the Subsidiaries), on the other hand
(collectively, the "Intercompany Payables").
(b) In the event that the 2004 Audited Financial Statements reflect
results of operations for the Company and the Company Subsidiaries for the
fiscal year ended February 28, 2004 equating to less than $350,000,000 of EBITDA
for such fiscal year, the net amount to be paid by Purchaser to Seller for the
Purchase shall be reduced by the Adjustment Amount.
1.3 Closing. The closing of the Purchase (the "Closing") shall take place
at the offices of Sullivan & Cromwell LLP, 125 Broad Street, New York, New York,
at 10:00 a.m., New York City time, on the third business day following the
satisfaction or waiver of the conditions set forth in Article VI (other than
those conditions that by their terms are to be satisfied at the Closing, but
subject to the satisfaction or waiver of such conditions); provided, however,
that the Closing shall take place no earlier than the later of (i) April 30,
2004 or (ii) the sixth business day following the satisfaction or waiver of the
condition set forth in Section 6.2(d); or at such other place, time and date as
the parties may agree. The "Closing Date" shall be the date upon which the
Closing occurs.
1.4 Deliveries by Purchaser. At the Closing, Purchaser shall deliver to
Seller the following:
(a) The Purchase Price by wire transfer of immediately available funds to
the accounts designated by Seller pursuant to Section 1.2(a);
(b) The certificate to be delivered pursuant to Section 6.3(c); and
(c) Such other documents and instruments necessary to consummate the
transactions contemplated by this Agreement upon the terms and conditions set
forth in this Agreement, all of which, together with the documents and
instruments referred to above, shall be in form and substance reasonably
satisfactory to Seller.
1.5 Deliveries by Seller and the Company. At the Closing, Seller and the
Company shall deliver to Purchaser the following:
(a) A certificate or certificates representing the Shares, duly endorsed
in blank or accompanied by share transfer forms duly endorsed in blank in proper
form for transfer, with appropriate transfer stamps, if any, affixed;
(b) The certificate to be delivered pursuant to Section 6.2(c);
(c) Written resignations, effective as of the Closing, of any
non-executive directors of the Company and the Company Subsidiaries;
-2-
{PAGE}
(d) All minute books, stock record books (or similar registries) and
corporate (or similar) records and seals of each of the Company and the Company
Subsidiaries;
(e) A receipt acknowledging payment of the Purchase Price by Purchaser in
full satisfaction of Purchaser's obligations under this Section 1.5 (but subject
to any further obligations contained in this Agreement);
(f) The general release and discharge in favor of the Company and the
Company Subsidiaries referred to in Section 5.15 (Release of Obligations);
(g) A certificate in form and substance satisfactory to Purchaser that
complies with Section 1445 of the Code, duly executed and acknowledged,
certifying that the transactions contemplated hereby are exempt from withholding
pursuant to the provisions of the Foreign Investors Real Property Tax Act and
specifying therein the facts supporting the exemption; and
(h) Such other documents and instruments necessary to consummate the
transactions contemplated by this Agreement upon the terms and conditions set
forth in this Agreement, all of which, together with the documents and
instruments referred to above, shall be in form and substance reasonably
satisfactory to Purchaser.
1.6 Intercompany Payables. The wire transfer or transfers in respect of
the Loan Repayment Amount pursuant to Section 1.2(a)(ii) shall be deemed to
occur immediately after title to the Shares passes to Purchaser at the Closing.
Purchaser, by paying the Loan Repayment Amount in satisfaction of the respective
portions thereof owed by the Company and Shaw's Supermarkets, Inc. to SIL and
Shaw's Finance LLC, respectively, shall be deemed to have advanced to the
Company and Shaw's Supermarkets, Inc. an amount equal to the respective portions
of the Loan Repayment Amount owed by them to SIL and Shaw's Finance LLC,
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