buyout firm apollo to buy smart & final stores for $1.1 billion - smart

by:ITATOUCH     2019-08-20
buyout firm apollo to buy smart & final stores for $1.1 billion  -  smart
(Reuters)-
Apollo Global Management Co. , Ltd. said on Tuesday it will buy Smart & Final Stores Inc. for about $1 . . 1 billion (842.
4 million)
Including debt, this is the second time private equity companies have U. S. Treasury bonds. S. food retailer.
Prior to the deal, Apollo sold Smart & Final to another acquisition company, Ares Management Corp, for $0. 975 billion in 2012, including debt.
This is Apollo's latest bet. and-
Even after the last acquisition in the field, the price of the mortar grocery industry reached $1.
In 2016, the 4 billion lever acquisition of fresh food market companies, in the increasingly competitive situation, prices fell.
Apollo will pay $6.
Smart & Final is $50 per share, 21% higher than Tuesday's closing price.
Share price in-
Reuters reported hours before announcing the deal.
Smart & Final operates 324 grocery and food service stores in California, Oregon, Washington State, Arizona, Nevada, Idaho, Montana and Utah.
On 2014, Ares went public for $12 a share.
Since then, with the company struggling in a difficult environment, the value of these stocks has lost nearly halfand-
Mortar retailer.
Ares currently owns nearly 60% of the company.
Headquartered in California business, Smart & Final faces competition from direct competitors and e-commercecommerce firms. Amazon.
Com bought the entire food market company for $13.
2017 7 billion. Deep-
International entrants in the United States made money. S.
Markets such as Lidl and Ahold Delhaize, as well as discount retailers such as Walmart and Dollar General Motors, are also squeezing the profitability of Smart & Final.
According to people familiar with the matter, Apollo plans to split Smart & Final into two separate operations because they have different business models.
A unit will include 257 stores operating under the Smart & Final banner that allow consumers to shop at a discount without charging membership fees.
The second unit will include 67 stores under the banner of the company's smart food service, which
Provide cheap warehouse forms for other food companies such as restaurants and catering services.
Apollo's previously acquired grocery market, the fresh market, struggled with the vast amount of organic and natural food offered by its competitors.
Its bond deals are well below par value, with Moody's Investors Service, a credit rating agency, calling its capital structure "unsustainable ".
Of course, Apollo has also achieved success in the field of groceries.
In 2015, the company cashed out a $0. 2 billion investment from the organic grocery store Bean Sprouts Farmers Market Company, 10 times the company's investment.
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