Albertsons announces board changes, appoints new director

In a recent SEC filing, Albertsons Companies , Inc. (NYSE:ACI) - a prominent player in Consumer Staples with nearly $80 billion in annual revenue and a market capitalization of $11.88 billion - announced the resignation of Stephen Feinberg from its Board of Directors and the appointment of Frank Bruno as a new board member, effective today. According to InvestingPro analysis, the company maintains a GOOD financial health score, suggesting strong operational fundamentals.

Feinberg, who began his service on the board in October 2024, stepped down without any disagreements regarding the company’s operations, policies, or practices. His departure follows his designation by affiliates of Cerberus Capital Management, L.P. ("Cerberus"), a private investment firm. InvestingPro subscribers can access detailed governance analysis and 12+ additional expert insights about Albertsons’ strategic position and future prospects.

Following Feinberg’s resignation, Bruno, the Co-Chief Executive Officer and Senior Managing Director of Cerberus, was appointed to the board for a term ending at Albertsons’ 2025 annual meeting of stockholders. Bruno’s appointment is in line with the director designation rights set forth in a Stockholders’ Agreement dated June 25, 2020, between the company and Cerberus.

Bruno’s experience with Cerberus, which manages approximately $65 billion in assets, spans various asset classes, including private credit, private equity, real estate, and other investments. He has been with Cerberus since 1998 and is a Cornell University alumnus.

Cerberus holds a significant stake in Albertsons, owning 151,818,680 shares of the company’s Class A common stock. The firm also provides certain services to Albertsons, details of which are disclosed in the company’s proxy statement for the 2024 annual meeting of stockholders.

The filing indicated that aside from the disclosed information in the proxy statement, Bruno is not involved in any other transactions with Albertsons that would require disclosure under SEC regulations.

This board change comes as Albertsons continues to navigate the competitive grocery retail market, currently trading at an attractive P/E ratio of 11.5 with analyst price targets ranging from $19 to $27 per share. The information for this report is based on an 8-K filing with the SEC. For comprehensive analysis including Fair Value estimates and detailed financial metrics, access the full Pro Research Report available on InvestingPro.

In other recent news, Albertsons Companies, Inc. announced the pricing of a $600 million private offering of 6.250% senior notes due in 2033. The proceeds from this offering, alongside available cash, are intended to fully redeem the company’s existing $600 million 7.500% senior notes due in 2026. This strategic financial move aims to manage Albertsons’ debt effectively by taking advantage of current market conditions. Additionally, Citi resumed coverage on Albertsons, issuing a Buy rating with a price target of $26.00, highlighting the company’s potential for improved sales and profitability following a blocked merger attempt with Kroger Co (NYSE:KR).

Furthermore, Albertsons has announced plans to lay off corporate and divisional support staff, a decision that follows the termination of the proposed merger with Kroger. This development has led to a decline in the company’s share value, marking a significant drop since December 17. These recent developments reflect Albertsons’ ongoing financial and strategic adjustments in response to market dynamics and regulatory decisions.

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