Albertsons preparing again to go public - FreshFruitPortal.com

Albertsons preparing again to go public - reports

Albertsons, the grocery giant that also owns Safeway and Jewel-Osco, is preparing to go public again, The Wall Street Journal reported on Monday citing people familiar with the matter. 

The company has reportedly been updating initial-public-offering documents that have been confidentially filed with the Securities and Exchange Commission.

It will decide in the coming weeks whether or not it will proceed with an IPO, the WSJ said. The move could value it around US$19bn.

An IPO would help private-equity investor Cerberus Capital Management LP exit its 15-year-long investment in Albertsons, the publication reported.

The firm is rethinking an IPO given the better performance as well as a strong market and positive economic indicators. The reported move comes a few months after the company showed new sales momentum in the second financial quarter.

iIentical-store sales in the fiscal second quarter were their highest in three years. They came behind improving store operations and loyalty, private brand penetration and e-commerce.

After Albertsons’ 2015 merger with Safeway, investors tried to take the company public, looking to raise as much as US$1.6bn in an IPO, but then pulled the offering amid lackluster market conditions for retail stocks in late 2015.

In 2018, the company attempted to go public with a US$24bn merger deal with Rite Aid Corp., which fell apart due to investor pushback in August 2018.