BOISE, ID - Albertsons has entered into a new agreement in which it will sell 71 of its owned locations to a Delaware limited liability company for over $720 million, and in turn, lease them right back. According to a new filing made with the SEC, Albertsons expects to enter into lease agreements with the purchaser, which is operating under the name “CF Albert LLC," for initial terms of 20 years.
In the filing, a wide array of Albertsons-owned banners were named as sellers of the 71 locations involved in the agreement, including Vons, Safeway, Acme Markets, Jewel Food Stores, Randall’s Food & Drugs, and Dominick’s Finer Foods. However, a list of the specific properties being sold was not included in the filing.
So, who is CF Albert LLC? Names of representatives for the company and their addresses were all redacted in the sale agreement. CF Albert does not have a web presence, but the filing does refer to the business as a “Delaware limited liability company.” According to DelawareInc.com, a Delaware limited liability company is a business vehicle with a legal existence separate and distinct from its owners. This means its owners and managers are not personally liable for the company's debts and obligations.
The deal, expected to close before December 2, would allow for Albertsons have more liquid assets and free up cash, but as of now, representatives for the company have not disclosed what the $720 million will be used for.
To read more on the specifics of Albertsons’ deal, click here to read the company’s SEC filing.
