Buyout firm Apollo Global Management said on Wednesday it has invested US$1.75 billion in Albertsons Companies Inc, a sign of confidence in the debt-laden U.S. supermarket operator whose fortunes have picked up in the coronavirus outbreak.
The parent of grocery chains such as Safeway, Vons and Acme for years struggled to generate enough earnings growth to pursue an initial public offering that would allow its owners, including private equity firm Cerberus Capital Management LP, to cash out.But the pandemic has fueled a boom in its business as consumers who stay at home buy more groceries. Albertsons said last month that its sales in March and most of April were up 34per cent from last year.
Apollo said it and a group of other investors acquired US$1.75 billion of convertible preferred shares in Albertsons, representing a 17.5per cent stake in the company.
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