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May 21, 2020

Albertsons Sells 17%+ Stake to Apollo Global

SN: "Just over two months after filing for an initial public offering, Albertsons Cos. plans to sell a more than 17% stake in the company to private equity firm Apollo Global Management. Albertsons said Wednesday that funds managed by Apollo affiliates have agreed to buy $1.75B of its convertible preferred stock. After the repurchase of a portion of common stock owned by current shareholders, Apollo will hold about 17.5% of pro forma common shares outstanding in Albertsons on an as-converted basis, according to the Boise, Idaho-based grocery retailer. The transaction is expected to be completed by June 15, pending customary closing conditions, Albertsons said. The grocer is owned by an investment group led by private equity firm Cerberus Capital Management. "Albertsons Cos. is pleased to work with Apollo and its co-investors. Apollo knows our industry and business model well, given its significant prior history of successful investments in the grocery sector. We believe the investment led by the Apollo Funds represents a vote of confidence in both our business and our long-term strategy,” Albertsons Cos. President and CEO Vivek Sankaran said. “We are also proud to have the continued support of our owners, a consortium led by Cerberus... which also includes Kimco Realty Corp., Klaff Realty LP, Lubert-Adler Partners LP and Schottenstein Stores Corp. We appreciate their tremendous support over the years in operations, technology and financing as we have grown our business and our platform, and especially during the COVID-19 pandemic as we focus on the safety and well-being of our associates, customers and communities." On March 6, Albertsons filed a registration statement for an IPO with the SEC, a couple of months after news reports said the chain was looking to go public. Two previous attempts by Albertsons to become public fell through... Apollo’s current grocery retail investments include The Fresh Market, which the private equity firm acquired for $1.36B in 2016, and Smart & Final, acquired in a $1.12B buyout that closed last June. Apollo also had been the controlling owner of Sprouts Farmers Market but sold off its remaining shares in the specialty grocer in 2015 after the chain went public in 2013"...

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