Albertsons Companies, Inc. has recently announced an accelerated share repurchase (ASR) agreement with JPMorgan Chase Bank, National Association to repurchase $750 million of its common stock. This agreement comes as part of the company's increased board authorized share repurchase program, which has been raised from $2 billion to $2.75 billion, inclusive of the ASR agreement.
The ASR represents approximately 8% of the company's current outstanding shares, signaling a significant commitment to creating value for its shareholders. The company will pay $750 million to the dealer and expects to receive an initial delivery of approximately 80% of the shares of its common stock initially underlying the ASR agreement. The total number of shares to be repurchased will be based on the volume-weighted average price of the company’s common stock on specified dates during the term of the ASR agreement, less a discount, and subject to customary adjustments under the terms and conditions of the ASR agreement.
Albertsons Companies operates 2,257 retail stores with 1,720 in-store pharmacies, 405 associated fuel centers, 22 dedicated distribution centers, and 19 manufacturing facilities across 35 states and the District of Columbia under 22 well-known banners. The company has emphasized its commitment to helping people live better lives by making a meaningful difference, neighborhood by neighborhood, as evidenced by its significant contributions to food and financial support, including more than $40 million through its nourishing neighbors program in 2024.
This move by Albertsons Companies reflects its confidence in the strength of its business and long-term growth, as well as its commitment to providing attractive returns to its shareholders. The ASR agreement and the increase in the share repurchase program demonstrate the company's strategic approach and financial discipline in delivering value to its investors. Following these announcements, the company's shares moved -0.26%, and are now trading at a price of $19.21. For the full picture, make sure to review Albertsons's 8-K report.
