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Albertsons Quarterly Profit Rises
May 30, 2006 · Reuters
Albertsons Inc., the U.S. grocer being acquired by a consortium of retailers and financial buyers, said on Tuesday quarterly profit rose, driven by higher gross margins and lower expenses.
Profit rose to $167 million, or 45 cents per share, in the first quarter ended May 4, compared with a profit of $100 million, or 27 cents per share, a year earlier.
In January, Boise, Idaho-based Albertsons accepted a takeover bid of $9.8 billion in cash and stock and the assumption of $6.1 billion of debt from a group led by grocer Supervalu Inc. The deal will split the company among retailers and financial buyers. Albertsons and Supervalu shareholders are set to vote on the deal today and expect it to close in early June.
CVS Corp. will buy 700 stand-alone Sav-On and Osco pharmacies and a distribution center as part of the deal, while an investor group led by hedge fund Cerberus Capital Management and including Kimco Realty Corp. will buy 655 stores and a number of distribution centers.