Monday, January 23, 2006

Alb3rts0n's announces definitive agreement to sell


So I recieved the "official" information in my store email at 3:04am. It was sent by "Communications" and stated the following:

Alb3rts0n's Inc. (NYSE:ABS) announced today that it has entered into a difinitive agreement to sell the entire company to a consortium of investors for a total transaction value of approx. $17.4 billion in cash, stock and assumed debt, including the settlement of the Alb3rts0n's Hybrid Income Security units. The value of the transaction to Alb3rts0n's shareowners is approx. $26.29 per share representing a premium of approx. 27% based on the company's closing share price of $20.73 on September 1, 2005, the day before it announced it would explore strategic alternatives.
Members of the consortium involved in the transaction are SuperValu Inc. (NYSE:SVU), CVS Corp. (NYSE:CVS) and an investor group led by Cerberus Capital Management, L.P. that also includes Kimco Realty, Schottenstein Realty, Lubert-Adler Partners and Klaff Realty, LP.
Assets and operations will be divided by consortium members as follows:
SuperValu will acquire approx. 1124 operating stores and 100% of the support operations for Acme Markets, Bristol Farms, Jewel-Osco, Shaw's, and Star Markets as well as Alb3rts0n's in Idaho, Southern Nevada, Utah, Southern California and the Northwestern US. Also included are all of the combo-store pharmacies, operating under the Osco and Sav-on banners. These assets combined with SuperValu's existing assets would create a strong new company with 2,656 stores in 48 states plus the District of Columbia and approx. $44 billion in revenues, making it the second largest supermarket company in America.
CVS will acquire 100% of the stand-alone drugstore business, which includes approx. 700 freestanding stores as well as a distribution center located in La Habra, California. CVS will also acquire Alb3rts0n's ownership intrests in the drug store real estate and intends to sell these interests at or soon after closing in a sale-leaseback transaction. The Sav-on and Osco banners are not part of the sale to CVS. All stand-alone drugstores included in the transaction will be re-bannered as CVS.
The Cerberus-led consortium will acquire 655 operating stores and 100% of the distribution centers and offices in Alb3rts0ns' Dallas/Fort Worth division, and in the Florida , Northern California, Rocky Mountain and Southwestern regions. These stores operate under the Alb3rts0n's and Super Saver banners and also include the combo- store pharmacies under the Osco and Sav-on banners. Cerberus has also purchased 26 Cub Stores from SuperValu in the Chicago area for an undisclosed amount.
The transaction is subject to approval by Alb3rts0n's and SuperValu shareholders as well as customary regulatory approvals. It is expected to close in mid-2006.

The email ended with comments from Larry Johnston, who is the Chairman, CEO and President of Alb3rts0n's, on the transaction and other than his worthless comments, this is pretty much word-for-word all the information that was given. Now I am sure Larry's eyes have completely turned to dollar signs ;)

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