Locally owned. Supported by members.

Albertsons says it will move ahead with IPO, sets price

Regence Blue Shield Idaho
Idaho Business pres. by My 102.7

Albertsons says it is finally ready. The company will launch its initial public offering, bringing the company back to Wall Street for the first time in nearly fifteen years.

The Boise-based company said it would sell 65.8 million shares of stock, with a price target of between $18 and $20. The company first publicly indicated it would launch the IPO in March, just a few weeks before the COVID-19 pandemic began impacting the US.

Apollo’s investment and the IPO

Last week, Albertsons closed on a large investment from Apollo Global Management. The hedge fund purchased 17.5% of the company’s shares for $1.75 billion – valuing the company at $10 billion.

During the Idaho Tech Council’s Capital Connect event last week, hosted by BoiseDev, Albertsons’ former SVP and current board consultant Andy Scoggin explained why the retailer made the deal with Apollo.

“Apollo is one of the top investment groups in the world,” Scoggin said. “They’ve been very active in the retail grocery space. To the market, it sends a very strong message of confidence. They’ve decided to write a big check to invest in this grocer. It provides a very strong benchmark of value of $10 billion. If you have someone who knows this space and bargains hard (making an investment), they put a price out there.”

Albertsons IPO details

- Story continues below ads -
The Sundance Company
Regence Blue Shield Idaho

The IPO could raise as much as $1.5 billion. A date for the IPO is still not yet set – though Albertsons filed an updated prospectus with the SEC today that outlines the pricing terms of the offering.

The company will trade on the New York Stock Exchange under the symbol ACI – for Albertsons Companies Inc.

[Q&A with Albertsons: Worker safety, hiring furloughed workers, COVID precautions and more]

Albertsons first launched in Idaho in 1939. Safeway, which it acquired, also started in Idaho, first opened in 1915 in American Falls.

Albertsons maintains its primary headquarters in Boise, and employs hundreds of workers in finance, administration, marketing and other roles. It employs more than 2,500 Idahoans.

The company saw booming results in the wake of the pandemic, with revenue increasing, and the hiring of 55,000 additional employees nationwide.

[In ecommerce battle, Albertsons looks to small neighborhood warehouses; amps up ‘drive up’ service in Boise area]

The long road to Albertsons’ IPO

A coalition of owners led by Cerberus Capital Management currently controls Albertsons. The private equity firm and its allies purchased a small number of Albertsons stores in 2006. It set up Boise-based Albertsons, LLC – separate from Supervalu, Inc., which purchased the majority of the company’s stores.

Where Supervalu struggled, Albertsons, LLC surged. Seven years later, in 2013, Supervalu sold all its stores to the Cerberus-led group. It later acquired Safeway Inc. and transitioned its back-end systems to that company’s infrastructure to lessen its dependence on Supervalu.

In 2015, Albertsons said it would go public, but dropped the idea late that year after other grocery companies saw weakness on Wall St.

It later tried to acquire Rite Aid, taking the combined company public. But that deal also fell apart.

Love our stories? Get them delivered straight to your inbox each afternoon. Plus, support BoiseDev's independent journalism.

Don Day
Don is the founder and editor of BoiseDev. He is a National Edward R. Murrow Award winner and a Stanford University John S. Knight Fellow.

Pizza restaurant popular in North End eyes SE Boise location

A pizza restaurant in Boise's North End could open a new location. Lulu’s Pizza, which currently operates at 2594...

CenturyLink will change its name – but you may or may not see it

As the CenturyLink turns. We told you last week that the company would leave its Downtown Boise office space....

Meridian-area bakery/cafe locations go up for sale

Two area bakery and cafe locations just hit the market. The owners of the Great Harvest Bakery Cafe stores in Meridian...

McLean launches small business grant program for impacts of COVID-19

Boise's small businesses feeling the squeeze from COVID-19 will have another avenue for assistance. This week, the City...

Popular

Sun Valley Resort releases winter plan: tweaks and adjustments

Sun Valley Resort released its plan for the upcoming winter season. As in past years, Sun Valley plans...

Boise-based Cradlepoint gets new owner in huge billion-dollar deal

A Boise-based company will get a new parent company, and its owners will get $1.1 billion in their pockets.

CenturyLink will change its name – but you may or may not see it

As the CenturyLink turns. We told you last week that the company would leave its Downtown Boise office space....

Owners apply to tear down Boise Bench office building

A 1960s office building on the Boise Bench with a unique look could soon disappear. The Clint-Graham Center at...

Meridian-area bakery/cafe locations go up for sale

Two area bakery and cafe locations just hit the market. The owners of the Great Harvest Bakery Cafe stores in Meridian...

Costco sets opening date for new Meridian store

The Treasure Valley will soon include three Costco Wholesale stores. Costco Meridian has an opening date. Just in time...

Related

When’s Joe Albertsons’ supermarket… new store opening near you?

The old jingle goes... "It's Joe Albertsons' supermarket, but the bakery department is mine." One of...

Albertsons rolls out new saliva test for COVID-19

By Katie Kloppenburg / Idaho News 6 Albertsons pharmacies in southern Idaho are now...

Albertsons exec joins Boise VC firm StageDotO

Former Albertsons Companies Executive VP Andy Scoggin will join Boise venture capital firm StageDotO as a partner. "I first...

Albertsons latest retailer to start requiring masks nationwide

Boise-based Albertsons Companies will soon start requiring mask usage in all its stores nationwide. The retailer operates stores under its own name,...

Latest

Boise-based Cradlepoint gets new owner in huge billion-dollar deal

A Boise-based company will get a new parent company, and its owners will get $1.1 billion in their pockets.

Sun Valley Resort releases winter plan: tweaks and adjustments

Sun Valley Resort released its plan for the upcoming winter season. As in past years, Sun Valley plans...

Boise utility companies enact payment plans instead of utility shut-offs

Some of Boise’s major utility companies started to ease back into collections after months of holding off due to COVID-19. 

Pizza restaurant popular in North End eyes SE Boise location

A pizza restaurant in Boise's North End could open a new location. Lulu’s Pizza, which currently operates at 2594...

CenturyLink will change its name – but you may or may not see it

As the CenturyLink turns. We told you last week that the company would leave its Downtown Boise office space....

Meridian-area bakery/cafe locations go up for sale

Two area bakery and cafe locations just hit the market. The owners of the Great Harvest Bakery Cafe stores in Meridian...