Boise-based Albertsons Cos. said Feb. 28 that its board has begun a review of possible strategic alternatives for the company, including potential financial transactions.
"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 toward maximizing value creation," Albertsons board co-chair Chan Galbato said in a news release. Galbato is CEO of Cerberus Operations, the operations platform of former Albertsons majority owner Cerberus Capital Management.
Albertsons said its board hasn't set a timetable for the review and that no decisions about next steps have been made. The review, which the company said is "aimed at enhancing Albertsons’ growth and maximizing shareholder value," will include responding to outside inquiries as well as "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." Goldman Sachs and Credit Suisse are serving as financial advisers during the review process.
Albertsons operated 2,278 retail food and drug stores as well as 22 distribution centers and 20 manufacturing centers across a total of 34 states and Washington, D.C., as of Dec. 4, 2021. Among its 20 banners are leading regional players such as Albertsons, Safeway, Vons, Jewel-Osco, Shaw's, Acme and Tom Thumb.
According to data released earlier this month by foot-traffic analytics firm Placer.ai, Albertsons ended 2021 on a positive traffic note, with store visits in the year's final three months rising quarter over quarter and year over year as well as climbing nearly 15% over traffic in the fourth quarter of 2019. Two weeks ago, Albertsons announced it had entered into a partnership with San Francisco-based DoorDash for express grocery delivery in 30 minutes or less in more than 20 U.S. markets.