Albertsons Companies, Inc. Announces Changes to Board of Directors

Rhea-AI Summary

Albertsons Companies (NYSE: ACI) announced significant changes to its Board of Directors effective October 24, 2024. Jim Donald has been elected as the sole independent Chair of the Board, while Stephen Feinberg, Co-CEO of Cerberus Capital Management, joins as a new board member following Chan Galbato's departure. Cerberus, which has been invested in Albertsons since 2006, manages approximately $66 billion in assets and reaffirmed its support for the proposed Kroger merger. Feinberg emphasized Albertsons' growth achievements and expressed commitment to continuing innovation in the grocery industry.

Positive

• Long-term strategic investor Cerberus Capital ($66B AUM) reaffirms support for Kroger merger
• Appointment of experienced leadership with Jim Donald as independent Board Chair
• Continuity in governance with Cerberus maintaining board representation

Negative

• None.

Jim Donald Elected as Independent Chair of the Board

Stephen Feinberg Appointed as a Member of the Board

Chan Galbato Steps Down from the Board

BOISE, Idaho--(BUSINESS WIRE)-- Albertsons Companies, Inc. (NYSE: ACI) (the "Company") today announced that effective October 24, 2024, the Board of Directors (the “Board”) has elected Jim Donald as the sole independent Chair of the Board.

Also, effective October 24, 2024, the Board appointed Stephen Feinberg to the Board for the term expiring at the Company’s 2025 annual meeting of stockholders. Cerberus Capital Management, L.P. (“CCM” and, along with its affiliates, “Cerberus”) designated Mr. Feinberg to the Board in accordance with the Stockholders Agreement dated June 25, 2020, by and among the Company and Cerberus (the “Stockholders’ Agreement”), after Chan Galbato stepped down from the Board on October 22, 2024. Mr. Galbato was previously designated to the Board in 2021 by Cerberus pursuant to the Stockholders’ Agreement.

Vivek Sankaran, CEO, commented, “Jim will continue to provide strong leadership as Chair of the Board. I am excited to welcome Steve to the Board, and I thank Chan for his significant contributions.”

Stephen Feinberg is the Co-Chief Executive Officer of CCM, which is an investment adviser registered with the Securities and Exchange Commission pursuant to the Investment Advisers Act of 1940. Cerberus has approximately $66 billion of assets under management for investment funds, managed accounts, and other investment entities in a wide variety of asset classes, including private credit, private equity, real estate, and various other types of investments. Mr. Feinberg has led Cerberus since co-founding it in 1992.

“During the nearly two decades that Cerberus has been invested in Albertsons, the Company has achieved tremendous growth and major milestones to become a nationally strong business and leader in its communities,” Feinberg said. “I want to specifically thank Chan for his tireless work and dedication to the Company on behalf of all stakeholders, and Chan has been a great partner to the Company. I am excited to continue that partnership. I look forward to working with my colleagues on the Board and supporting Vivek, his management team, and the Company as it continues to innovate in the dynamic grocery industry and deliver quality and affordable choices to customers across the United States.”

Feinberg added: “Cerberus initially invested in Albertsons in 2006, with additional investments in 2013 and 2015 to support significant and strategic value creation opportunities. As a long-term investor in and partner to Albertsons across multiple investments, Cerberus is proud of Albertsons’ performance, and it will continue to be a strong supporter of the Company, its talented leadership team, and its dedicated associates.”

“As a stockholder in the Company, Cerberus reiterates its support for the proposed merger with The Kroger Company based on the compelling value proposition for all stakeholders, including the companies’ customers, associates, communities served by their stores, and investors,” Feinberg said. “I am excited to have joined the Board to continue driving value for all stockholders and other stakeholders.”

Forward-Looking Statements and Factors That Impact Our Operating Results and Trends

This press release includes "forward-looking statements" within the meaning of the federal securities laws. The "forward-looking statements" include our current expectations, assumptions, estimates and projections about our business and our industry. You can identify forward-looking statements by the use of words such as "outlook," "may," "should," "could," "estimates," "predicts," "potential," "continue," "anticipates," "believes," "plans," "expects," "future" and "intends" and similar expressions which are intended to identify forward-looking statements. The forward-looking statements are based on the Company’s current expectations and involve risks and uncertainties which are beyond our control and difficult to predict and could cause actual results to differ materially from the results expressed or implied by the statements. Certain potential factors that could affect our business and cause actual results to differ materially from those expressed or implied in any forward-looking statements are described in the “Risk Factors” section or other sections in our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”) on April 22, 2024, and in reports subsequently filed with the SEC and available at the SEC’s website at www.sec.gov.

About Albertsons Companies

Albertsons Companies is a leading food and drug retailer in the United States. As of September 7, 2024, the Company operated 2,267 retail food and drug stores with 1,726 pharmacies, 405 associated fuel centers, 22 dedicated distribution centers and 19 manufacturing facilities. The Company operates stores across 34 states and the District of Columbia under more than 20 well known banners including Albertsons, Safeway, Vons, Jewel-Osco, Shaw's, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen, Carrs, Kings Food Markets and Balducci's Food Lovers Market. The Company is committed to helping people across the country live better lives by making a meaningful difference, neighborhood by neighborhood. In 2023, along with the Albertsons Companies Foundation, the Company contributed more than $350 million in food and financial support, including more than $35 million through our Nourishing Neighbors Program to ensure those living in our communities and those impacted by disasters have enough to eat.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241028693481/en/

media@albertsons.com

Source: Albertsons Companies, Inc.

FAQ

When will Jim Donald become the Chair of Albertsons (ACI) Board?

Jim Donald will become the independent Chair of Albertsons' Board effective October 24, 2024.

Who replaced Chan Galbato on Albertsons (ACI) Board of Directors?

Stephen Feinberg, Co-CEO of Cerberus Capital Management, replaced Chan Galbato on Albertsons' Board effective October 24, 2024.

How long has Cerberus been invested in Albertsons (ACI)?

Cerberus has been invested in Albertsons since 2006, with additional investments made in 2013 and 2015.

Does Cerberus support the Albertsons-Kroger merger?

Yes, Cerberus explicitly reaffirmed its support for the proposed merger between Albertsons and Kroger, citing compelling value proposition for all stakeholders.