The Fresh Market to be Acquired for $1.36 Billion is your source for free news and information in Williamsburg, James City & York Counties.

The Fresh Market in Williamsburg is located in the Courthouse Commons shopping center. (Ty Hodges/ WYDaily)
The Fresh Market in Williamsburg is located in the Courthouse Commons shopping center. (Ty Hodges/ WYDaily)

The Fresh Market will be acquired by affiliates of investor Apollo Global Management for $1.36 billion, a move intended to maximize value for stockholders and achieve the specialty grocery chain’s strategic plan.

The Fresh Market, which employs more than 13,000 people, has store locations along the Peninsula. The Williamsburg location anchors the Courthouse Commons shopping center, which includes Starbucks, Sticks Kebob Shop and Pure Barre.

Funds managed by affiliates of Apollo, a global alternative investment manager, will be used to acquire The Fresh Market for $28.50 per share in cash, according to a news release. This offer benefits stockholders because it is 24 percent greater than The Fresh Market’s closing share price on March 11 and about 53 percent over the February 10 closing share price.

“We are excited about this transaction with Apollo, which recognizes the value of The Fresh Market’s strong brand and significant growth prospects while providing stockholders with an immediate and substantial premium,” said Rick Anicetti, The Fresh Market’s president and chief executive officer, in the news release. “Apollo is a highly regarded investor, bringing deep industry expertise and financial resources, and we look forward to working with them to build on our progress in achieving our strategic plan to deliver long-term profitable growth.”

Andrew S. Jhawar, senior partner and head of the retail and consumer group at Apollo, stated retailers and brands like Sprouts Farmers Market, Smart & Final, Hostess Brands and General Nutrition Centers have “undergone significant transformations” under Apollo’s strategic guidance and The Fresh Market can expect the same experience.

“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,” Jhawar said in the news release.

The transaction is expected to close in the second quarter of 2016.