The Board of Directors of Albertsons Companies announced that it had commenced a Board-led review of potential strategic alternatives to enhance Albertsons’ growth and maximize shareholder value.
The company said it had retained Goldman Sachs and Credit Suisse to serve as financial advisors to assist in this review.
According to a press release, the review will include an assessment of various balance sheet optimization and capital return strategies, potential strategic or financial transactions, and development of other strategic initiatives to complement Albertsons’ existing businesses, as well as responding to inquiries.
The supermarket chain did not clarify what it seeks with this review, leaving open possibilities that include a potential large-scale purchase, a sale, or other growth alternatives.
“The Board believes the 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,” said Chan Galbato, Co-Chair of the Board of Directors.
“Albertsons Companies operates more than 2,270 stores across 34 states with growing digital and omnichannel capabilities, along with a vast dedicated manufacturing and distribution infrastructure, which have become integral to the fabric of communities across the U.S. The Board believes that this review, coupled with an ongoing focus on accelerating our transformation strategy, will create enhanced value for all our stakeholders, including our customers, associates, and investors,” Galbato added.
The Board has not set a timetable for the conclusion of this review, nor has it made any decisions related to any further actions or potential strategic alternatives at this time, according to the company.
There can be no assurance that the review will result in any transaction or other strategic change or outcome. Albertsons does not intend to comment further until it determines that further disclosure is appropriate or necessary.
As of December 4, 2021, Albertsons Companies operated 2,278 retail food and drug stores with 1,722 pharmacies, 399 associated fuel centers, 22 dedicated distribution centers, and 20 manufacturing facilities.
The grocer operates stores across 34 states and the District of Columbia under more than 20 well-known banners, including Albertsons, Safeway, Vons, Jewel-Osco, Shaw’s, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen, Carrs, Kings Food Markets and Balducci’s Food Lovers Market.