Albertsons to Raise Up to $1.84 Billion in IPO

Grocery giant Albertsons Cos. on Friday said it expects to raise up to $1.84 billion in its initial public offering, months after private-equity firm Cerberus Capital Management LP combined Albertsons with Safeway Inc.

The Boise, Idaho-based company, whose store banners also include Tom Thumb and Jewel Osco, set the proposed maximum offering size in a regulatory filing after first setting its IPO in motion in July.

Albertsons will trade on the New York Stock Exchange under ticker symbol "ABS."

An investment group led by Cerberus first bought a chunk of Albertsons in 2006 and eventually the grocer sold the rest of itself to the private-equity firm. Last March, Cerberus struck a deal to acquire Safeway Inc. for about $9.4 billion, a transaction that brought together Albertsons and Safeway chains to create what is the country's second-largest grocer, behind Kroger Co.

The tie-up was part of a string of deals among U.S. grocery chains grappling with tepid growth and fierce competition from discounters like Wal-Mart Stores Inc. and more upscale options like Whole Foods Market Inc.

For the year ended in February, Albertsons reported a loss of $1.2 billion on $27.2 billion in sales.

Write to Lisa Beilfuss at [e-mail]

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September 25, 2015 07:35 ET (11:35 GMT)

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