US-based food and everyday staples retailer Smart & Final Stores has entered into a definitive merger agreement with certain investment funds, Apollo Funds, managed by affiliates of Apollo Global Management.
Under the agreement, Apollo Funds will purchase all of Smart & Final’s outstanding shares for $6.50 per share in cash.
The retailer’s board of directors unanimously recommended its stockholders to accept the offer and tender their shares in its favour.
Smart & Final board of directors strategic review committee chair Kenneth Tuchman said: “This transaction is the result of diligent analysis and thoughtful strategic deliberations by our board of directors over many months.
“Our board, with the assistance of independent financial and legal advisors, determined that this transaction, upon closing, will deliver immediate, significant and certain cash value to our stockholders.”
Apollo senior partner, and head of the consumer and retail Andrew Jhawar said: “We are very excited for our funds to be re-acquiring Smart & Final and expect to leverage Apollo’s deep expertise and history of success in food retail to support the Company as it embarks on its next chapter.
“The unique differentiation and strong value proposition of both the Smart & Final and Smart Foodservice banners are evident to us and we welcome the opportunity to augment and enhance the experience for the Company’s household and business customers. We look forward to working with the management team as well as the over 12,000 team members to capitalise on the Company’s position in the marketplace.”
The transaction is currently subject to the approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, Mexican competition law and other customary closing conditions. The acquisition is expected to be completed by the third quarter of this year.
Following its completion, Smart & Final will stop trading on the New York Stock Exchange (NYSE) and will become a privately held portfolio company of Apollo Funds.