Private equity firm Apollo Global Management is buying specialty grocery retailer Fresh Market for $1.36 billion in cash in hopes for longer-term return. Leah Duncan reports.
Private equity firm Apollo Global Management is shelling out about $1.4 billion dollars in cash for specialty grocery retailer The Fresh Market. The offer, at $28.50 a share represents a 24 percent premium to Fresh Market's Friday closing price. It comes after chairman and founder Ray Berry said he was exploring a bid to take the company private back in October. Reuters correspondent Lauren Hirsch. (SOUNDBITE) LAUREN HIRSCH, REUTERS CORRESPONDENT (ENGLISH) SAYING: "It certainly makes sense for Apollo. They have a long history of investing in the space, they invested in Sprouts, they invested in Smart & Final, and they had a lot of success. So, it's an area that Apollo knows very well. And, on the Fresh Market side, they've been struggling, same-store-sales have been down. They had trouble with kind of merchandizing and pricing. They need the helping hand, and, so, it makes sense that they would turn to Apollo for that hand." Specialty grocery retailers have been struggling to find a niche. They've been squeezed between low-end retailers such as Wal-Mart and Kroger and on the other end of the scale, Whole Foods. Fresh Market shares soared more than twenty percent on the announcement.