According to the company, the transaction is predicted to close in the second quarter of 2016 and on a condition that shares representing more than 50% of the retailer’s common share-other than owned by Ray and Brett Berry that are being rolled over-be offered, the receipt of approval under the Hart-Scott-Rodino (HSR) Antitrust Improvements Act of 1976 and other customary closing conditions.
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Apollo said Monday it is paying $28.50 for each share of Fresh Market, a 24 percent premium of the stock’s closing price of $22.98 on Friday.
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Fresh Market announced on October 20 it had retained JP Morgan Chase to assist in a review of strategic options, including the potential sale of the company. On average, equities research analysts predict that Apollo Global Management will post $1.35 EPS for the current fiscal year.
Apollo Global Management LLC (NYSE:APO)’s stock had its “neutral” rating reiterated by equities research analysts at Credit Suisse in a research note issued on Thursday, MarketBeat reports.
For Fresh Market, Apollo will provide the financial muscle and operational maturity to grow into a larger entity.
Berry recused himself from all discussions related to a review of strategic alternatives and from voting on the transaction, the retailer said.
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 has 183 stores, which it operates across 27 states.
Founded back in 1982, the specialty grocery The Fresh Market has focused on putting an old world charm back to the local grocery stores.
The transaction has fully committed financing in place, Apollo said.
The grocer often gets lumped in as a competitor to Whole Foods Market and Sprouts Farmers Market, but while it sells some organic groceries, its more about specialty brands, prepared foods, cheese and wine, bread and based goods made in the store and gift baskets.
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Apollo agreed February 8 to buy Apollo Education Group Inc. for $1.1 billion, and on February 16 it it said it would acquire home-security monitoring company ADT Corp. for about $6.9 billion.
