Cerberus Capital, parent company of Albertsons, is going public, one year after the private equity firm acquired Safeway supermarkets for $9 billion.
Albertsons is the second largest U.S. grocery chain, just behind Kroger, and operates more than 2,200 stores, including 1,247 that are Safeway stores, Reuters reported. Other brands under the banner include Vons, Jewel-Osco, Shaw's, Tom Thumb and United Supermarkets.
The IPO comes at a time when traditional supermarkets are under pressure from big-box retailers and warehouse clubs who have recently jumped full force into the grocery wars. In fact, Walmart (NYSE:WMT) reported that half its revenue came from groceries in 2014.
Supermarkets are also getting increased pressure from specialty stores such as Whole Foods (NASDAQ:WFM) and Sprouts, not to mention the rapidly growing division of online grocery shopping and delivery from companies such as Instacart and Peapod.
Albertsons' filing contained a fund raising target of $100 million, and the proceedings will go toward repaying debt for corporate purposes. The filing did not reveal how many shares the company planned to sell.
-See the Reuters article
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