Apollo Buys Smart & Final

Apollo buys Smart & Final.
   
Apollo Global Management buys Smart & Final Stores for $1.1 billion.
   
Smart & Final runs 324 grocery and food service stores in California, Oregon, Washington, Arizona, Nevada, Idaho, Montana, and Utah.  The company went public in 2014 at $12 per share.  It competes with direct rivals, discount retailers, and e-commerce firms.
     
Apollo will split Smart & Final into two distinct units, running on separate business models.  One unit will form the 257 stores operating as Smart & Final, where customers shop at a discount with no membership fees.  The second unit will form the 67 stores operating as Smart Foodservice, a no-frills warehouse format selling directly to restaurants and caterers.
   
Kenneth Tuchman of Smart & Final said: ‘This transaction is the result of diligent analysis and thoughtful strategic deliberations by our board of directors over months.  Our board, with the help of independent financial and legal advisers, determined that this transaction, upon closing, will deliver immediate, significant, and certain cash value to our stockholders.’
   
David Hirz of Smart & Final said: 'This transaction is a testament to the strength of Smart & Final's franchise, the quality of our store banners, and the talent and ability of our people.  Under the ownership of the Apollo Funds, Smart & Final will benefit from Apollo's strategic guidance, which will help us speed up our existing strategy in a dynamic industry environment.  We are excited about the future as we embark on a new chapter in our almost 150-year history, with a strategic partner that understands our strengths, culture, and customer-centric philosophy. We would like to thank Ares Management for its partnership and support in helping us grow our business to where we are today.’
   
David Kaplan of Ares Management said: ‘We are happy to fully support this transaction, and we would like to thank the Smart & Final management team for its strong commitment and execution over the past seven years.  We wish the management team and employees continued success under new ownership.’
   
Andrew Jhawar of Apollo said: ‘We are excited for our funds to be re-acquiring Smart & Final and expect to leverage Apollo's deep ability 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 clear 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 12,000 team members to capitalize on the Company's position in the marketplace.’
   
Jefferies, Citigroup Global Markets, and Centerview Partners served as financial advisers to Smart & Final.  Kirkland & Ellis serves as legal adviser.  Gibson, Dunn & Crutcher serves as legal adviser to the Strategic Review Committee of the Smart & Final Board of Directors.
   
Morgan, Lewis & Bockius acts as legal adviser to the Apollo Funds.  Paul, Weiss, Rifkind, Wharton & Garrison acts as legal adviser to the Apollo Funds as it relates to the debt financing.

Comments

Post a Comment

Popular posts from this blog

Pepsi Buys Rockstar

Pepsi buys Rockstar .     P epsiCo buys Rockstar Energy Beverages for $3.85 billion.     Founded in 2001, Rockstar is drinks designed for people leading an active lifestyle. Available in 20 flavors at convenience and grocery stores in 30 countries. Distributed by PepsiCo in North America since 2009. Supporting the Rockstar lifestyle across the globe through action sports, motorsports, and live music. Pepsi's energy portfolio also includes Kickstart , GameFuel, and Amp Energy.     The deal reflects the shift from reliance on sales of sugary, fizzy drinks toward options ranging from tea and coffee to still and sparkling water varieties, which appeal to health-conscious and younger consumers. Neither PepsiCo nor Coca-Cola owns a major brand in the energy drinks category, which is forecast to grow to more than $80 billion over the next five years and is now dominated by Red Bull.     2 00 countries and territories around the world enjoy ...
Read more

Compass Buys Marucci

Compass buys Marucci.     Compass Diversified Holdings buys Marucci Sports for $200 million.     Marucci Sports was founded in 2009 by Kurt Ainsworth, a retired pitcher for the San Francisco Giants and Baltimore Orioles, Joe Lawrence, a former second baseman for the Toronto Blue Jays, and Reed Dickens, a former White House Assistant Press Secretary under George W. Bush.     Marucci ’s first buy was Marucci Bat Company, launched out of a backyard shed in 2004. Ainsworth then led the buyout of an Amish-run Pennsylvania wood mill in 2008. This solidified Marucci's superior wood supply, and it still supplies all Marucci's wood today. In 2017 Marucci bought Victus , a baseball equipment maker known for its edgy designs and big attitude.     With vertically cohesive wood bat production, a global supplier group, and a client base of MVPs and World Series winners, Marucci and Victus are the top two bats among Big League players. T...
Read more

Gilead Buys Forty Seven

Gilead buys Forty Seven.     Gilead Sciences buys Forty Seven for $4.9 billion.     Forty Seven is a clinical-stage immuno-oncology firm developing therapies targeting cancer immune evasion pathways and specific cell targeting approaches based on tech licensed from Stanford. Forty Seven’s lead program, magrolimab , is a monoclonal antibody against the CD47 receptor, a ‘don’t eat me’ signal that cancer cells commandeer to avoid being ingested by macrophages. Evaluated ant ibodies are in many clinical studies of patients with myelodysplastic syndrome, acute myeloid leukemia, non-Hodgkin lymphoma, and solid tumors. These assets complement the cell therapy franchise Gilead added with its 2017 buy of Kite Pharma .     Beyond magrolimab , Forty Seven is fixing to advance two more compounds into clinical testing. Developing FSI-174, an anti-cKIT antibody, in combination with magrolimab creates a novel, all-antibody conditioning regimen to address ...
Read more