M&A · Industrials · Retail-Grocery Stores
Kroger Co to acquire Albertsons Companies, Inc.
Announced Oct 14, 2022 · Terminated Dec 11, 2024
Deal value$24.60BEV $24.60B
Premium32.8%To unaffected price
EV / Adj. EBITDA5.6x0.3x EV / Revenue
ConsiderationAll cash$34.10 per share
Transaction
- Acquirer
- Kroger Co (KR)
- Target
- Albertsons Companies, Inc. (ACI)
- Buyer type
- Strategic
- Offer price per share
- $34.10
- Enterprise value
- $24.60B
- Status
- Terminated Dec 11, 2024
Deal protections
- Break fee (target pays)
- $318M · 1.3%
- Reverse fee (buyer pays)
- $600M · 2.4%
- Go-shop
- No-shop
- Financing
- —
Advisors
- To the acquirer
- Citigroup, Wells Fargo
- To the target
- Goldman Sachs, Credit Suisse
- Credit Suisse fee
- $50.0M
Sector context · Industrials
- Comparable deals
- 78 in the prior 24 months
- Premium
- 32.8% vs. 47.4% sector median
- EV / Adj. EBITDA
- 5.6x vs. 11.0x sector median
- Break fee
- 1.3% vs. 2.8% sector median
Timeline
- AnnouncedOct 14, 2022
- Proxy filedDec 2, 2022
- Definitive proxyApr 21, 2023
- Shareholder vote—
- TerminatedDec 11, 2024
Valuation · fairness opinions
Trading comparablesGoldman Sachs$31.95$34.14
Discounted cash flowGoldman Sachs$27.48$33.27
Future share priceGoldman Sachs$28.72$35.46
Premiums paidGoldman Sachs$31.42$33.88
Trading comparablesCredit Suisse$25.34$30.98
Precedent transactionsCredit Suisse$29.43$36.95
Discounted cash flowCredit Suisse$28.54$35.78
Offer $34.10
Implied value per Albertsons Companies, Inc. share by analysis, from Goldman Sachs and Credit Suisse · DCF discount rate 7%–8%.