"BELLINGHAM, WA (AP) — The small grocery-store chain Haggen on Tuesday sued Albertsons for more than $1 billion in damages, alleging the supermarket giant engaged in systematic efforts to eliminate it as a viable competitor in five states."
Ah-Ah-Ah.......too funny......... Haggen really came in kind of arrogant claiming "No More Hassle" when replacing Albertsons stores in June. Now it shows that in towns where nobody had ever heard of Haggen.....people continued to go to Albertsons and did not buy into the higher prices set by Haggen. People are not dumb, and Haggen is closing 2 of the three stores that bought in my town........I don't expect the third store to survive past the time it will take to liquidate the inventory of the two closing stores using the last one open........Dec. 31, 2015 is my best date when Haggen will leave my town.....and regret its "little adventure".
Too much growth too fast..........and no own DD before jumping into a very competitive market might turn out to be be very expensive learning experience for Haggen. I do feel sorry for the employees though.
Haggen not doing good with its purchase from Albertson's :
"More than 20 stores will be closed or sold in California, Arizona, Nevada, Oregon and Washington."
This is what happens when a frog wants to become a bull overnight...........
From Greenhill's website, under "Recent Transactions"
7/28/15 ... "Pending" ... Save-A-Lot ... (paraphrasing here) "Advising SuperValu on exploring a separation of
Save-A-Lot, including a potential spinoff of it into a publicly traded company"
The presence of the aforesaid, on Greenhill's website, would lead one to believe that matters relating to a
possible Save-A-Lot separation, from SVU, are in a reasonably advanced stage.
Per North Tide Capital, LLC SEC Schedule 13G filing, dated 7/28/15, "North Tide" ownership interest
in SVU is:
North Tide Capital Master, LP 5.2%
North Tide Capital, LLC 5.7%
Conan Laughlin (North Tide founder) 5.7%
North Tide SVU shareholdings sort of interesting in that, historically, a very high percentage of their investments have been in the healthcare sector.
The fact that they are considering a spin off probably means that holders of SVU stock will be granted free shares of SAL pro rated. The big boys already knew this thus the steady deline of the PPS to reflect a more reasonable valuation for SVU as a stand alone.
They are able to short it down from around $12 to close to $7 then turn on a dime and go long before the announcement today.
The value of the 2 companies will exceed that $12 figure after spin off. It also puts a true stand alone valuation on SAL for anyone looking to possibly aquire it. JMHO
IF that happens, it could be good for SAL in several ways, but what of svu will be left
and how will they fair without SAL as a whole? Alot to work out.
This news should come as no real surprise to anyone familiar with SVU. The SAL portion has always been viewed as the greatest opportunity to generate cash when it is sold. So are you seeing the value to shareholders coming from what is left after the spin off?
They keep mum, because Kroger could make an offer before Albertson's IPO. People will look at the valuations when Albertsons go public and SVU is positioned well.
Thanks redbug for your very informative post.
Yeah...it is still a bit confusing and intertwined between Albertsons, Cerberus, and Safeway. Where I live Haggen just bought 3 Albertsons, and they are not doing well at all. All clients are now going to Safeway 1 mile away, and the former Albertsons' employees -taken over by Haggen for one year they were told- are looking for new jobs.....mainly at Safeway.
We'll see what kind of IPO is coming up........... GL
Well written post, one of the better ones on this board. With respect to the TSA those "sales" represent a significant positive for SVU each quarter. As the TSA winds down SVU will be challenged to replace those gross profit dollars.
SUPERVALU sold all of the remaining stores that they acquired from Albertsons in 2006 to Cerberus. However, part of the deal included a Transition Services Agreement (TSA) whereby SVU would continue to provide IT, HR, and Accounting support to Albertsons LLC. Earlier this spring Albertsons LLC announced that they would begin to wind down that agreement with SVU over a three year period. SVU also continues to distribute their private label brands to the stores owned by Cerberus, but I've noticed recently at the Albertsons by where I live that that they're carrying Safeway's Lucerne private label in the egg case.
It's my understanding the 100 million dollars is only an estimate in order to calculate a filing fee. At this point I don't believe they've announced how many shares will be offered or how much those shares will cost.
1. Does SVU still have anything to do with Albertsons today or was it sold 100% to Cerberus?
2. Is Cerberus planning to sell 100% of Albertsons (including Safeway, Vons, etc.) in the upcoming IPO? $100M seems too cheap......
Thanks - :o)