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RetailRetail

After buying Safeway, Albertsons files for IPO

By
Dan Primack
Dan Primack
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By
Dan Primack
Dan Primack
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July 8, 2015, 7:13 AM ET
General Views of Park City
PARK CITY - JANUARY 22: A general View of Albertsons supermarket during the 2004 Sundance Film Festival January 22, 2004 Park City, Utah. (Photo by Mark Mainz/Getty Images)Photograph by Mark Mainz — Getty Images
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U.S. supermarket giant Albertsons this morning filed for an initial public offering, and reported more than $57 billion in pro forma 2014 revenue.

The Boise, Idaho-based company said that it plans to raise $100 million in the IPO, although that is almost certainly a placeholder number that will be increased later. It did not identify the stock exchange on which it will list its shares, nor a requested ticker symbol. Goldman Sachs (GS) is listed as lead underwriter, with four other banks also on the prospectus.

Albertsons was acquired back in 2006 by a private equity and real estate consortium led by Cerberus Capital Management, and then was significantly expanded earlier this year via a $9.4 billion merger with rival Safeway. The combined company now operates over 2,200 stores in 33 states:

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The company reports a $385 million net loss on nearly $58 billion in revenue for pro forma 2014 (i.e., with Safeway included), and more than $12 billion in debt on the books. It is the nation’s second-largest grocer, behind Kroger (KR).

Its IPO announcement comes just weeks after Koninklijke Ahold (Netherlands) — whose U.S. business includes the Stop & Shop and Giant supermarket chains — and Delhaize Group (Belgium) agreed to a $29.5 billion merger.

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By Dan Primack
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