Albertsons Companies, a US grocer operating under Albertsons, Safeway, and other banners, announced terms for its IPO on Thursday. In its latest filing, the company also added six underwriters.
The Boise, ID-based company plans to raise $1.25 billion by offering 65.8 million shares (100% secondary) at a price range of $18 to $20. At the midpoint of the proposed range, Albertsons Companies would command a market value of $9.1 billion and an enterprise value of $19.0 billion.
The company was LBO'd in 2005 by a Cerberus-led group of private equity firms. It previously filed for a $1.6 billion IPO in 2015, but postponed the offering and eventually withdrew in 2018 when it planned to merge with Rite-Aid (NYSE: RAD). The merger was never completed.
Albertsons is one of the largest food retailers in the United States, with 2,252 stores across 34 states and the District of Columbia. The company operates under 20 banners, including Albertsons, Safeway, Shaw's, and United Supermarkets. Its banners have an average operating history of 85 years.
Albertsons Companies was founded in 1926 and booked $62.5 billion in sales for the 12 months ended February 29, 2020. It plans to list on the NYSE under the symbol ACI. It had been on our Private Company Watchlist (IPO Intelligence clients only) since January 2020. BofA Securities, Goldman Sachs, J.P. Morgan, Citi, Credit Suisse, Morgan Stanley, Wells Fargo Securities, Barclays, and Deutsche Bank are the joint bookrunners on the deal. It is expected to price during the week of June 22, 2020.
