Cerberus’s Albertsons Files for IPO of U.S. Grocery-Store Chain

Albertsons Cos., the grocery chain with more than 2,000 stores across the U.S., filed for an initial public offering.

The planned IPO of Albertsons comes just six months after its private-equity owner, Cerberus Capital Management, completed a $9 billion acquisition of Safeway Inc. A combination of Albertsons and Safeway will be the second-largest grocery-store chain in the U.S. behind Kroger Co., according to PrivCo Media.

In addition to the Albertsons and Safeway brands, the Boise, Idaho-based company operates chains such as Vons, Jewel-Osco, United Supermarkets and Pavilions. Adjusting for the acquisition of Safeway, Albertsons posted sales of $57.5 billion last year, with net losses of $385 million, according to the filing.

Sales at Albertsons stores open at least a year increased by 7.2 percent last year, while Safeway’s rose 2.8 percent, the filing showed.

A group of investors led by Cerberus purchased Albertsons in 2006, followed by the acquisitions of NAI from SuperValu Inc. and United in 2013, and the Safeway transaction, which closed in January. Albertsons sold 168 stores as required by the Federal Trade Commission as part of the Safeway acquisition.

Albertsons filed with a $100 million placeholder, a figure used to calculate fees that will change. Goldman Sachs Group Inc., Bank of America Corp., Citigroup Inc. and Morgan Stanley are managing the offering.

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