This is an interesting premium deal, enacting by a shitty private equity firm. Apollo Global is buying TFM for as 24% premium to Friday’s close. The supermarket industry has been racked with underperformance. Perhaps the morons at Apollo feel they can lose a little bit of money on this deal, as opposed to gargantuan losses.
Nevertheless, it might put a bid under other grocers, like WFM and SFM.
Apollo Global Management LLC agreed to buy grocer The Fresh Market Inc. for about $1.4 billion in cash in the buyout firm’s third announced acquisition of more than $1 billion since the start of February.
Shareholders will receive $28.50 a share in a tender offer, the companies said in a statement Monday. The price is 24 percent above Fresh Market’s closing level on Friday.
Fresh Market’s board conducted an “open and thorough review” of strategic alternatives before agreeing to the sale, according to the statement. Still, the Greensboro, North Carolina-based company can solicit better offers for 21 days after signing a definitive deal, the companies said.
Shares of TFM are down 45% over the past year.
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