News & Press
Cerberus Exits Albertsons via Discounted IPO
The IPO priced at $16, below its $18-$20 estimated price range and fell to $15.45 in its first day of trading. On Monday, the shares rose about 30 cents to $15.81.
Olamide (Lami) Ajibesin said Albertsons went public at an Ebitda valuation of about 3.1 times its 2019 Ebitda. Kroger Co. (KR) trades at roughly 12 times Ebitda, by contrast.
Albertsons reported a large jump in same-store sales recently because of the Covid-19 crisis. During the four weeks ended May 23, same-store sales grew by 21%, compared to a rise of 0.5% a year earlier.
Cerberus acquired the company in 2013. The company eyed a potential IPO in 2015 and tried to merge with Rite Aid Corp. in 2018.
Along the way, it re-branded from Safeway to Albertsons, built out its online sales business and strengthened its fundamentals, Ajibesin said.
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