Albertsons reportedly considering Sprouts merger

3/20/2017

BOISE, Idaho — According to sources familiar with the matter, Albertsons is in discussion with Sprouts Farmers Market about a potential merger, Bloomberg reported recently.


The report notes that a potential plan could see Sprouts — a publicly traded company based in Phoenix, Ariz. — going private as an addition to Albertsons’ portfolio of banners.


Bloomberg noted that Sprouts is valued around $3 billion based on share prices from Monday, and a Jeffries Group analyst has noted that the company could draw $26 a share in a potential merger — about an 18% premium on share price at last closing.


Albertsons, which completed its Safeway acquisition in 2015, is backed partially by Cerberus Capital Management.


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