Local news. Locally owned.

Albertsons announces IPO date and initial price

Tamarack Summer
Idaho Business pres. by My 102.7

Albertsons Companies will return to life as a public company next week.

It will return the Boise-based grocery giant to Wall Street for the first time in more than 15 years, and give a group of investors that bought a series of underperforming stores in the late-2000s a long-sough way to monetize their bet.

The company now says it will sell 50-million shares of stock, priced at $16 each. That could net as much as $800-million for the investor group, led by Cerberus Capital Management.

The stock will start trading tomorrow – June 26th, according to a news release.

A lower price

The company changed its mind from just last week, when it said it would sell 65.8 million shares at between $18 and $20. The new pricing strategy will value the company at less than $10 billion – under the value Apollo Global Management bought a 17.5% piece of the company for earlier this month.

- Story continues below ads -
Idaho Central Credit Union Business Banking
Paddles Up Poke

The change fetches less than Albertsons hoped to get on the market after a series of strong initial public offerings in recent months.

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

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.

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.

BoiseDev is the area's only locally-owned commercial news outlet. Your support will help us cover more stories and bring you more vital information. Become a member today!

Popular

Boise’s mask order: Do you have to wear one at the office?

At midnight Friday, a new emergency ordinance went into effect requiring masks in public in Boise, with a few exceptions.

At least $1.15 billion in loans handed out to more than 7,500 Idaho businesses – see who got the money

The Small Business Administration released data on the Paycheck Protection Program loans it doled out to date early Monday. The PPP...

Related

Albertsons returns to the stock exchange, ends first day down. What the CEO says is next

For the first time in 14 years, you can now buy stock in Boise-based grocery giant Albertsons Companies. The...

Adapting to pandemic, JR Simplot’s veggies now available at Joe Albertsons’ supermarkets

From living in Idaho, you likely are familiar with the JR Simplot Company. But you don't typically see the company's brand at...
Holland and Hart

Latest

St. Luke’s, Saint Alphonsus on rising number of COVID patients: ‘we’ve got to be ahead of this’

With the number of cases of COVID rising across Idaho - and the Boise metro area - the leaders at the top...

Sleepier summer in Sun Valley: The only stars are the ones in the sky; Allen & Co. canceled

Typically, the week after the Fourth of July sees the Sun Valley area fill up with big names aboard private jets. ...

Photo essay: COVID brings big changes to Zoo Boise

Last month, Zoo Boise started welcoming visitors again after several months closed due to the COVID-19 pandemic. The popular...

Boise started an economic recovery task force. Details on its work remain limited

Boise Mayor Lauren McLean launched her economic recovery task force to help the city during the pandemic a little more than a...

Utah company acquires Boise-grown data center business

A longstanding Boise data center business got snapped up by an out of state company recently. Tonaquint Data Centers of St....

Washington credit union formally takes over Boise CU, transition on the way

Icon Credit Union, has agreed to merge with Horizon Credit Union and combine $1.5 billion in assets and over 100,000 members.