US private equity company Apollo Global Management is exploring the sale of its Hispanic grocery chain, Heritage Grocers Group.
The move comes as concerns over mass deportations and Immigration and Customs Enforcement (ICE) raids have prompted Heritage’s core Hispanic customers to exercise greater caution over their shopping habits, dampening consumer demand within Latino communities across the US, as reported by Reuters.
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Apollo could secure $1.5bn from the potential sale and has engaged investment bank UBS to manage the process.
Heritage Grocers generates $150m in earnings before interest, taxes, depreciation and amortisation (EBITDA) and records more than $2bn in annual revenue.
Apollo and UBS declined to comment on Reuters’ inquiries, while Heritage Grocers also did not respond to requests for comment.
The company operates several Hispanic-focused grocery banners, including El Rancho Supermercado, Cardenas Markets and Tony’s Fresh Market.
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By GlobalDataApollo acquired Tony’s from its founding family and Cardenas from private equity firm KKR in 2022, merging the two.
It purchased El Rancho in 2023.
Heritage Grocers currently operates 115 stores across Arizona, California, Illinois, Kansas, Nevada and Texas.
Apollo has made various investments in the grocery sector, including The Fresh Market, Sprouts Farmers Market, Smart & Final and Albertsons.
