Tuesday, March 11, 2014
"Blackhawk's day-to-day operations of its prepaid products business have been conducted independently for the past two years, except for sharing tax and treasury management functions," Blackhawk said. "As a result, Safeway's change in ownership will not adversely impact Blackhawk's operations and the distribution by Safeway will complete Blackhawk's independence as a stand-alone public company."
Blackhawk Chief Executive Officer Bill Tauscher noted Safeway recognized that Blackhawk needed to be run as a separate business unit apart from Safeway in order to be successful. "Blackhawk would need to operate independently and partner with many grocery retailers that compete with Safeway," he said. In fact, Blackhawk is already the prepaid card supplier for Albertsons.
Tauscher also related that Safeway's board of directors recently concluded that Safeway should divest its remaining ownership in Blackhawk to open up the distributor to additional market opportunities.
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