Albertsons set to raise $1.8 billion from IPO

It was reported last week that Albertsons, which operates 2,200 stores in 33 states, including Acme Supermarkets in the Greater Philadelphia Region, expects to raise up to $1.84 billion in its initial public offering. The company has not yet said when the IPO will take place.

Executives plan to change the organizational structure of AB Acquisition LLC and its subsidiaries from an LLC into a corporation known as Albertsons Companies. Once the offering closes, each entity within AB Acquisition will become a wholly-owned subsidiary of the new entity.

The company's January acquisition of Safeway made Albertsons the second largest supermarket chain in America, behind Kroger.

Cerberus to merge Albertsons with Safeway in $9 billion deal

AB Acquisition, an investor group led by Cerberus Capital Management, agreed to purchase Safeway yesterday for $9 billion, or $40 per share. The transaction is expected to close by the end of the year.

Cerberus plans to fund the acquisition, which is being called an Albertsons - Safeway merger, with debt financing of about $7.6 billion and contributions from partners and co-investors.

According to Supermarket News, the merger will create a company with more than 2,400 stores, 27 distribution facilities, 20 manufacturing plants and over 250,000 employees. No store closures are anticipated for now, although experts believe "divestitures" may be possible since the companies overlap in certain markets, particularly along the West Coast.

Safeway CEO Robert Edwards will become CEO of the combined company.

Combined sales for Safeway and Albertsons in 2013 totaled nearly $60 billion.