Kroger and Albertsons Plan to Sell More Than 400 Stores for Nearly $2 Billion, Sources Say
Introduction of Albertsons
Albertsons is one of the largest grocery chains in the United States. With over 2,200 stores across 34 states, Albertsons has become a staple for American shoppers looking to fill their kitchens. The Idaho-based company was founded in 1939 by Joe Albertson in Boise. What started as a small, single grocery store has since grown into a powerhouse in the supermarket industry. Today, Albertsons continues to provide customers with quality products at affordable prices. Shoppers can find all the usual grocery fare at Albertsons, from fresh produce and meat to dairy and pantry staples. Beyond food, Albertson also features selections of general merchandise, health and beauty products, pharmacy items, and more. The stores aim to make grocery shopping convenient through services like home delivery, curbside pickup, in-store dining, and gas stations. Albertsons’ private label brands, like Signature Select and O Organics, offer additional savings on grocery items. With its sprawling presence across much of the country, Albertsons has become a go-to supermarket for millions.
Kroger (KR.N) and Albertsons Cos (ACI.N)
Sept. 6 (Reuters) – Kroger (KR.N) and Albertson Cos (ACI.N) are close to agreeing on a proposed $24.5 billion merger, selling more than 400 grocery stores to C&S Wholesale Grocers for nearly $2 billion, subject to U.S. regulatory approval.
The deal would make privately held C&S primarily a grocery supplier rather than a grocery store operator; C&S currently operates about 20 stores under the Grand Union and Piggly Wiggly brands.
Japanese investment group SoftBank Group (9984.T) is in talks with C&S about funding a small portion of the deal, one of the sources said.
SoftBank usually opts for technology-related deals, but has ties to C&S Chairman Rick Cohen.
Kroger and Albertson plan to sell
Sources said that the stores Kroger and Albertson plan to sell are primarily in the Pacific Northwest and the mountains, but also in California, Texas, Illinois, and the East Coast.
An agreement could be reached as early as this week, they said, but added that it is unclear whether a Kroger-Albertson merger would allay regulators’ concerns that Kroger and Albertson would have too much control over grocery prices.
The sources requested anonymity because the negotiations are confidential. Kroger and Albertson declined to comment; C&S and Softbank did not respond to requests for comment. Bloomberg News reported Monday on the negotiations between C&S, Kroger, and Albertson and Softbank’s involvement, but gave no information on the terms of the deal.
Kroger and Albertson had previously announced that between 100 and 375 stores may be sold to a new company owned by Albertson shareholders. In regulatory filings, Kroger capped the divestiture at 650 stores.
C&S has sought to develop its own stores in the competitive grocery supply market; it lost one of its largest customers in 2019 when Ahold Delhaize (AD.AS) decided to move to voluntary distribution.
