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Albertsons Announces "Strategic Review"

03/06/2022

On March 1st the Albertsons Company announced that the Board of Directors had commenced "a review of possible strategic alternatives" with the intent to optimize growth and maximize shareholder value.  Goldman Sachs and Credit Suisse have been retained as financial advisors.  Chan Galbato, Co-Chairman stated, "the Board believes that continuing strength of our business and the scale of our portfolio of assets warrants a deep and considered review of all possible paths towards maximizing value creation".

 

At the end of the third quarter ending December 4th 2021, the Company operated 2,278 food and drug stores in thirty-four states and DC under more than 20 banners.  Integral to the chain are 1,772 pharmacies, 399 fuel centers, 22 distribution centers and 20 manufacturing plants.

 

At the end of FY 2021, Albertsons Company posted assets of $27,936 million against long-term debt and lease obligations of $15,880 million.  Twelve-month trailing operating margin was 3.2 percent and profit margin 1.5 percent.  Return on assets over the past twelve months attained 5.1 percent and a return on equity 29.6 percent. 

 

The equity of ACI is held in the proportions of 15 percent by insiders and 73 percent by institutions. The company is controlled by Cerberus Capital Management with a 32.5 percent stake and Lubert Adler Management with 12.4 percent.  Five percent of the float is currently short.

 

Albertson debuted as an IPO on June 26th 2020, with shares offered at $16.  At market close on March 1st 2022 ACI was priced at $29.16, but closed on March 2nd after the release at $31.99.