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Albertsons reveals projected IPO proceeds

BY Michael Johnsen

NEW YORK — Albertsons expects to raise more than $1.8 billion through its proposed initial public offering, according to an SEC filing made Friday. Much of that would be used to pay down Albertsons present debt load $12.1 billion, as of June 20.
 
For fiscal 2014, Albertsons reported net loss of $1.2 billion on net sales of $27.2 billion. Same-store sales were up 7.2%. At Safeway, prior to Albertson's acquisition of the grocer, the rate of identical store sales growth was 3% in fiscal 2014 and accelerated in the first quarter of fiscal 2015 to 3.8%.
 
"We are one of the largest food and drug retailers in the United States, with both strong local presence and national scale," Albertsons wrote. "As of June 20, 2015, we operated 2,205 stores across 33 states under 18 well-known banners. … We operate in 121 Metropolitan Statistical Areas in the United States and are ranked No. 1 or No. 2 by market share in 68% of them. We provide our customers with a service-oriented shopping experience, including convenient and value-added services through 1,698 pharmacies and 378 adjacent fuel centers."
 
Over the past nine years, Albertsons has completed a series of acquisitions, beginning with its purchase of Albertson’s LLC in 2006 (the “legacy Albertsons stores”). This was followed in March 2013 by its acquisition of NAI from Supervalu, which included the Albertsons stores that were not already owned (the "Supervalu Albertsons stores”). In December 2013, Albertsons acquired United, a regional grocery chain in North and West Texas. And in January 2015, they acquired Safeway.
 
Albertsons will trade on the New York Stock Exchange under the ticker symbol "ABS." 
 
However, there were no details as to the estimated price range of its IPO or the number of shares to be sold on the market. 
 
Goldman Sachs, BofA Merrill Lynch, Citigroup, Morgan Stanley and Lazard are acting as underwriters to the IPO.
 
 
 
 
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Haggen puts 111 stores up for sale

BY Mike Troy

BELLINGHAM, Wash. — The bankrupt Haggen supermarket chain has listed 111 locations for sale, many in California, as the company looks to refocus its operations on 37 stores in the Pacific Northwest.
 
Bellingham, Washington-based Haggen has asked the bankruptcy court to approve store closing sales at 68 locations in California; 14 in Washington; seven each in Nevada and Oregon; and five in Arizona. The company has retained Sagent Advisors to explore market interest for the locations that were part of the 146 stores Haggen acquired from Albertson’s earlier this year. The ill-fated deal precipitated Haggen’s bankruptcy filing, which was followed quickly by a lawsuit that alleged Albertson’s sabotaged Haggen’s efforts to integrate the newly acquired stores.
 
Moving forward, Haggen said in a statement that it intends to re-build its operations around a core group of successful stores made up of 37 locations in the Pacific Northwest. The core stores include 16 of Haggen’s historical stores, one stand-alone pharmacy and 21 stores acquired from Albertson’s.
 
“Haggen plans to continue to build its brand in partnership with its dedicated corporate support and store teams. Haggen has a long record of success in the Pacific Northwest and these identified stores will have the best prospect for ongoing excellence,” said John Clougher, CEO of Haggen Pacific Northwest. “Although this has been a difficult process and experience, we will remain concentrated in the Pacific Northwest where we began, focusing on fresh Northwest products and continuing our support and involvement in the communities we serve.”

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Study: Timing of blood pressure drugs can affect diabetes development

BY DSN STAFF

HealthDay is reporting on a new study in Spain that shows the impact timing of a patient’s high blood pressure meds can have on whether or not they develop Type 2 diabetes. Findings point to the fact that taking medication at bedtime could reduce the risk of developing diabetes by more than 50%. 

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