Albertsons Considers IPO Valued at $19 Billion
- by Kayla Webb
BOISE, ID - Is 2020 the year Albertsons officially goes public? According to the Wall Street Journal, people familiar with the matter have confirmed that the grocer is indeed preparing to go public again. The potential IPO, which could value it around $19 billion, comes amidst movement by Albertsons’ backers to tap into a strong market and cash out of a 15-year-old investment.
The WSJ’s inside sources disclosed that Albertsons has been updating IPO documents that have been filed confidentially with the Securities and Exchange Commission. Should the retailer decide the time is right to go public, the news source noted that the move would be “one of the biggest tests of the IPO market this year.”
Private-equity investor Cerberus Capital Management has conducted a series of deals with Albertsons that date back to 2006—all of which have aimed to reduce Albertsons debt. Now, inside sources revealed that the investor is looking to “capitalize on Albertsons’ improved performance, strong markets, and positive economic indicators.” Despite this pendulum swing toward going public, the news source asserted the two companies are still weighing the pros and cons of going public now versus later. Should Albertsons wait to go public, it can continue to improve and name a higher price than $19 billion.
Rumblings of a possible Albertsons IPO have been frequent over the past couple of years. In 2019, the retailer’s CFO teased “an IPO could be in our future,” while in 2018, Albertsons pulled its IPO plans off the table. Albertsons IPO has been the source of rumor mills since as early as 2015.
Again I ask, is 2020 the year Albertsons officially goes public? The stars seem to be aligning—and the tongues of inside sources seem to be wagging—toward a certifiable yes. AndNowUKnow will continue to keep you up-to-date on the latest grocery movements.