Cerberus Exits Albertsons via Discounted IPOAnchin in the News June 29, 2020
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, managing director of transaction advisory services at Anchin, Block & Anchin LLP, 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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