Apollo Global Management to Acquire Fresh Market
March 14 2016 - 8:20AM
Dow Jones News
The Fresh Market, Inc. agreed to be acquired by an affiliate of
Apollo Global Management, LLC for $1.36 billion, completing the
specialty grocer's review of strategic alternatives.
Funds managed by Apollo will pay $28.50 per Fresh Market share
in cash, a 24% premium over Friday's closing price and a 53%
premium over Thursday's closing price, before speculation of a
potential transaction.
Ray Berry, Fresh Market chairman and founder of The Fresh
Market, and Brett Berry, who collectively own about 9.8% of the
company's shares, have agreed not to tender shares held by them
into the tender offer and will both participate and rollover most
of their holdings.
George Golleher, long-term operating partner of Apollo and
former Smart Final and Ralphs Grocery Company/Food-4-Less chief
executive while under Apollo's ownership, will also be a
co-investor.
Fresh Market focuses on higher-margin foods and services such as
imported cheeses, organic produce and on-site butchers. Fresh
Market, with a large presence in the southeastern U.S. and 176
stores overall, has a smaller footprint than rival Whole Foods
Market Inc. but has been expanding.
Andrew Jhawar, head of the retail and consumer group at Apollo,
said his team has executed transactions in several consumables
retailers and brands, including Sprouts Farmers Market, Smart &
Final, Hostess Brands, and General Nutrition Centers, "that have
undergone significant transformations under our strategic guidance
and we intend to bring that experience to bear at The Fresh
Market."
"We believe there is a significant opportunity to enhance the
brand, merchandise offering and price-value combination to make The
Fresh Market a primary destination for food shoppers, while at the
same time being committed to social responsibility through
partnerships with local vendors and communities," he said.
The transaction is expected to close in the second quarter of
2016.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
March 14, 2016 08:05 ET (12:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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