Apollo Global Acquiring The Fresh Market in Deal of $1.4 Billion
An affiliate of Apollo Global Management is planning to acquire The Fresh Market a specialty grocery in a deal involving all cash that is valued at approximately $1 .4 billion, said the two companies Monday.
The announcement sent shares of the grocery chain, based in Greensboro, North Carolina up by almost 23% during trading prior to the opening of the market on Monday.
Investors in Fresh Market would be given a per share rate of $28.50 for each share of stock they own under the purchase plan.
This offer represents a 24% premium over the closing price as of Friday March 6 and nearly 53% over the February 10 closing price which was the day before speculation by the public first began about a possible transaction, said the companies.
The deal announcement comes after what the grocery characterized as a review of its strategic financial alternatives.
The Fresh Market’s board of directors approved this deal unanimously, apart from founder and chairman Ray Berry, who had to recuse himself from all discussion by the board on this proposal.
Berry along with son who is the former Fresh Market CEO Brett Berry collectively own over 9.8% of the outstanding shares of The Fresh Market and have agreed not to tender what they hold into the tender offer of Apollo.
They are going to roll over the overwhelming majority of their own holdings in this deal with the buyout from New York City.
George Golleher is the former Ralphs Grocery and Smart & Final CEO will be one of the co-investors in this deal, said the companies.
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 company’s locations feature fresh flowers and products, samples of coffee that is newly-brewed as well as some bulk items. Currently there are 186 The Fresh Markets stores across 27 states in the U.S.
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