Apollo Global Management to Acquire Fresh Market

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 [e-mail]

(END) Dow Jones Newswires

March 14, 2016 08:05 ET (12:05 GMT)

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