BOISE -- Boise-based supermarket chain Albertsons is going public, making stock in the company available for purchase. One financial expert says this is the latest step that company's incredible comeback story.
Albertsons Companies Incorporated is the number two supermarket company in the United States. Wednesday, leaders announced Albertsons was going public again. This is part of a big comeback for Albertsons. It was a public company for 50 years before being largely dismantled in 2006. It was bought out, and at its low point, Albertsons stores had a U.S. market share of just .4 percent.
But now, with new homegrown leadership and a number of deals (including an $8 billion buyout of Safeway in January), it operates more than 2,200 stores in 33 states under 18 names, employing about 265,000 full- and part-time workers.
While going public doesn't mean new jobs, KTVB financial expert Dave Petso says it shows Albertsons growing strength. "The time feels right for these guys to take it to the market, and they wouldn't if this company wasn't strong and viable."
But just because the revenue is up, doesn't necessarily mean the profit is. Reuters reports that for the 53 weeks ending February 28, the company posted a net loss of $1.2 billion. But Petso says that's likely due to the costs of acquiring Safeway. "When looking at them as a company, operations store to store, 'Are they selling more? Are the profit margins holding?' It appears, yes."
And the big question, 'Should you buy Albertsons stock?' Petso says it's too early to tell. "It's nice to see it out there again. It really needs to fit a person's portfolio, of course. And we really do need to see what the numbers are when we bring it pro forma, what it will look like when they do go public, before you make any comment like, 'This looks like a great opportunity!'"
Albertsons leaders didn't say how many shares it would offer, what they would cost, where, or when those shares would start trading. But they did say they expect to raise roughly $100 million from the offering, which they'll use to repay debt and for general expenses.
