Apollo Global Management LLC (NYSE:APO) agreed to buy Specialty grocery retailer The Fresh Market Inc. (NASDAQ:TFM) for about $1.36 billion. This is the firm’s third acquisition deal of more than $1 billion this year.
Fresh Market’s shareholders will receive $28.50 a share under the acquisition plan. The offer represents a premium of approximately 24% over the firm's $22.98 closing price on Friday, and roughly a 53% premium over the closing price on Feb. 10, the day before initial public speculation about a potential transaction, the companies said.
Fresh Market’s founder and chairman Ray Berry and his son Brett Berry, who collectively own about 9.8 percent of the company’s share, agreed not to tender their shares and will roll over the vast majority of their shares in the transaction deal.
Fresh Market was founded in 1982 in Greensboro, North Carolina. The company now is operating 182 stores in 27 states. The company aims to develop a better grocery store and focuses on higher-margin foods and services. The company plans for continued expansion throughout the country.
This is Apollo’s third major deal of the year. The firm agreed Feb. 8 to buy Apollo Education Group Inc. for $1.1 billion, and on Feb. 16 it said it would acquire home-security monitoring company ADT Corp. for about $6.9 billion, according to Bloomberg.
”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,” Head of retail and consumer group at Apollo Andrew Jhawar said.