Deals

Apollo Global Management Takes Over Fresh Market for $1.36 Billion

March 14
10:02 PM 2016

On Monday, Fresh Market's board except chairman and founder Ray Berry agreed to be acquired by Apollo Global Management for $1.36 billion.  To date, it would be the third revealed acquisition of Apollo Global Management of more than $1 billion since the beginning of February.

Such deal would target to the grocery come back business for Apollo, which formerly owned Smart & Final Stores Inc. and Sprouts Farmers Market Inc. On Fresh Market's end, the selloff could help make the necessary investment to make its sales growth sparks again which has slowed down since its initial public offering in 2010 in the middle of the competition from counterparts Wal-Mart Stores and Kroger Co, as reported by Bloomberg.

Ray Berry separate himself from all talks associated to a review of strategic choices and from voting on the transaction. He has plans to privatize the company. He and his son Brett have aggregately own about 9.8% of the company's outstanding shares.

The agreement emphasizes Apollo's confidence that it can reverse companies in the highly competitive U.S. grocery sector. The deal that has fully decided financing in place is anticipated to close by Q2 of February.

Rick Anicetti was hired as chief executive by Fresh Market last year to combat low margins and diving same-store sales. He became President and CEO of Food Lion LLC's grocery stores, according to Fortune.

Fresh Market comprises of 183 stores and runs it across 27 states. Its main southeastern locations include Georgia, Florida and North Carolina.  The Mid-Atlantic and Midwest portion include Kansas, Oklahoma, Illinois and Connecticut.

The company states that it has 21 days to canvass superior offers.  Fresh Market's financial adviser would be J.P Morgan. Apollo's advisers would be Jefferies and Macquarie Capital, Barclays and RBC Capital Markets.  Till the closing on Friday, the stock rose to about 24% since February 10.

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