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Cerberus To Buy Albertsons Grocery Stores In $3.3 Billion Deal

The investment group Cerberus Capital Management LP will buy Albertsons stores from Supervalu for $3.3 billion according to The New York Times and the Wall Street Journal.

Here’s more from the Times’ DealBook blog:

The Cerberus-led group will also buy up to 30 percent of Supervalu itself, paying $4 a share in a tender offer. That represents a 50 percent premium to the grocery chain operator’s 30-day average closing price and nearly 32 percent higher to Wednesday’s closing price.

At a minimum, the investor consortium will own at least 19.9 percent of Supervalu. - NYTimes.com

Here’s information from the Wall Street Journal:

Under an agreement announced Thursday, Cerberus and some real-estate firms would pay $100 million for 877 stores, including Albertsons, Acme, Jewel-Osco, Shaw’s and Star Market outlets. The deal includes $3.2 billion in debt, for a total enterprise value of $3.3 billion.

In buying Albertsons, Cerberus aims to reunite those stores with other Albertsons stores it already owns. In 2006, a Cerberus-led group acquired more than 650 underperforming Albertsons stores as part of a larger deal to dismantle that grocer, Albertsons Inc. – WSJ.com

Albertsons was founded in Boise, Idaho in 1939. In 2006, Albertsons Inc. split into pieces and the majority of it was acquired by grocery store giant Supervalu.  Minneapolis-based Supervalu purchased the company in a $17.4 billion deal.

Here is a press release on today’s deal from Supervalu.

Comments

  • mr. douglas

    the best of luck ,size is not always the road to better profits reduce floor equals savings and that is passed on to the consumer and that equals volume by purchase from the consumer that equals profit smart business

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