Supermarket LBOs: Open register

Private equity houses are circling supermarkets. A group including Kohlberg Kravis Roberts & Co. has expressed an interest in J Sainsbury, the UK’s third-largest supermarket chain. In the US, Albertson’s was recently taken private for over $9bn, and Roundy’s, a $2bn Midwestern chain, said this week that it was seeking a buyer. Supermarket shareholders may be wary of selling out too cheaply. Past experience suggests that’s not such a big risk. It’s easy to see why the buyout shops are interested...