BOISE -- After seven years of being run by an out-of-state company, Albertsons grocery stores will once again be run and headquartered in Idaho.
The deal, reported for months, made final Thursday, between Supervalu and Albertson's LLC will put the running of all Albertsons stores under the same roof.
The deal involves cash and the assumption of debt. One financial analyst says taking on debt means stores will be closed and assets sold.
Financial analyst Dave Petso knew about the sale the second he saw Supervalu s stock price shoot up.
He says the market was pricing them to go out of business and that Supervalu had their backs against the wall. That could be the major reason it decided to sell off 1,070 stores, 12 distribution centers and 110,000 associates to the parent company of Albertson's LLC.
In return Supervalu got $100,000 in cash and $3.2 billion in debt off the books.
With all that debt, Petso says Albertson's LLC will sell stores and assets.
Venture capitalists don't get into businesses like this because they love a particular business, they get into it because it has a good rate of return, and part of that is going to be making sure that they can get that debt paid down and get a return on the capital, said Petso.
And there's some history to this deal. When Supervalu bought the Albertsons stores back in 2006, Albertson's LLC maintained its Boise headquarters and continued to run hundreds of stores out of state.
So for years, Albertsons grocery stores were owned by two separate companies. Now, they'll be back under the same roof.
It won't be as big as it was in its heyday for sure, but it's going to be a big presence here, said Petso.
While Albertson's LLC isn't talking about the deal because the transition happens overnight, changes are already happening at the Boise headquarters. Thursday afternoon they removed the Supervalu sign out front.
And another change, which brings this all full circle, is Bob Miller the CEO of Albertson's LLC. He was, back in the day, one of the company's top executives, heir apparent to CEO Warren McCain.
He got passed over, left the company, eventually coming back to help Albertson's LLC, and now gets what many thought should have been his years ago.
So they're back with their roots, and grocery people and I think he certainly carries an awful lot of strong characteristics as a CEO, said Petso.
KTVB talked to a spokesperson for Albertson's LLC today, who said they're excited to bring Albertsons stores together again. Adding, once the transition is complete Friday, we will begin to get more information about this deal and if that means store closures and job losses.
There's obviously still a lot of questions surrounding this deal, like what happens to the corporate employees? Will some move to Minnesota and stay with Supervalu? Or will Albertson's LLC take them on? We will continue to follow this story.