Apollo Funds to Acquire Cardenas Markets, One of the Largest Hispanic Grocery Chains in the U.S. from KKR
13 Juni 2022 - 10:15PM
Apollo (NYSE: APO) today announced that funds managed by its
affiliates (the “Apollo Funds”) have agreed to acquire Cardenas
Markets (“Cardenas”), a leading grocery retailer focused on serving
the Hispanic community, from investment funds affiliated with KKR,
a leading global investment firm. Upon completion of the
transaction, Apollo Funds will combine Tony’s Fresh Market, a
Chicago-based portfolio company, with Cardenas Markets, which
operates across California, Nevada and Arizona, to create a leading
Hispanic- and ethnic-focused grocer. Both companies will continue
to operate under their respective brands and local leadership,
while benefitting from greater scale, complementary capabilities
and an expanded operating footprint.
Founded in 1981, Cardenas is one of the largest Hispanic grocery
chains in the country with a differentiated store concept providing
high-quality, specialty groceries at affordable prices. The
Company, led by CEO Doug Sanders, today operates 59 stores and
sources products from over 500 vendors. The combined
Cardenas-Tony’s footprint will span nearly 80 stores across the
western and mid-west United States with approximately $1.8 billion
in combined revenues. Sanders will serve as CEO of the combined
company and Cardenas chain, while Frank Ingraffia will continue to
serve as the CEO of the Tony’s chain.
“Since joining Cardenas, we have made great progress in growing
and enhancing our operations with KKR’s support, and I am thrilled
by the opportunity for our team to now partner with Frank and the
Tony’s team, leveraging our collective strengths. Together, as two
of the highest quality Hispanic and ethnic grocers, we can deliver
even greater value to the communities we serve,” Doug Sanders, CEO
of Cardenas said. “Apollo private equity has an extensive
best-in-class track record of success in food retail, and I am
thrilled to partner with Andy Jhawar and the Apollo team again in
this exciting next chapter for Cardenas. I would also like to thank
KKR, which has been a tremendous strategic partner over the past
six years, helping us grow and professionalize the business.”
Andrew Jhawar and Joanna Reiss, Apollo Private Equity Partners,
said: “Cardenas has grown significantly over the last several years
under Doug’s leadership and we are excited to accelerate its growth
in combination with Tony’s in this next phase. We are excited to
once again partner with Doug following our highly successful
investment in Sprouts Farmers Market which Doug led as CEO under
Apollo funds’ ownership. Cardenas and Tony’s have robust positions
in the ethnic grocer space, and together can leverage best
practices across their complementary go-to-market strategies,
merchandising, customer loyalty programs and more. This transaction
will combine the best of both retailers and provide greater
opportunities and scale for the respective brands and teams as they
continue to bring quality, affordable groceries to diverse
communities.”
In 2016, KKR acquired Cardenas Markets from the Cardenas family
with the thesis of transforming the business into a growth
platform. Under KKR’s ownership, Cardenas doubled in size through a
combination of organic growth and strategic acquisitions.
Vishal Patel, a Managing Director at KKR, said: “We are
immensely appreciative of everything Doug and the management team
have done to build a great company dedicated to bringing fresh and
affordable groceries to the communities that it serves, consistent
with the values that the Cardenas family instilled in the business.
We are confident that Apollo and Tony’s Fresh Market are the right
partners for Cardenas as it enters its next chapter of growth.”
The transaction is subject to customary closing conditions and
is expected to be completed by Q3 2022. Financial terms of the
transaction were not disclosed.
Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal
counsel to the Apollo Funds. Solomon Partners acted as lead
financial advisor to Cardenas Markets and KKR. BMO Capital Markets
also advised, and Kirkland & Ellis LLP served as legal advisor
to Cardenas Markets and KKR. Credit Suisse, Wells Fargo and
Rabobank have provided committed debt financing for the
transaction.
About ApolloApollo is a high-growth, global
alternative asset manager. In our asset management business, we
seek to provide our clients excess return at every point along the
risk-reward spectrum from investment grade to private equity with a
focus on three investing strategies: yield, hybrid, and equity. For
more than three decades, our investing expertise across our fully
integrated platform has served the financial return needs of our
clients and provided businesses with innovative capital solutions
for growth. Through Athene, our retirement services business, we
specialize in helping clients achieve financial security by
providing a suite of retirement savings products and acting as a
solutions provider to institutions. Our patient, creative, and
knowledgeable approach to investing aligns our clients, businesses
we invest in, our employees, and the communities we impact, to
expand opportunity and achieve positive outcomes. As of March 31,
2022, Apollo had approximately $513 billion of assets
under management. To learn more, please
visit www.apollo.com.
About Cardenas Markets, LLCCardenas Markets is
headquartered in Ontario, CA, and currently operates a total of 51
stores under the Cardenas Markets banner, 7 stores under the Los
Altos Ranch Markets banner and 1 store under Cardenas Ranch Markets
banner. Today, Cardenas Markets is one of the largest Hispanic
grocery chains in the country with stores in California, Nevada,
and Arizona. For more information visit cardenasmarkets.com.
About KKRKKR is a leading global investment
firm that offers alternative asset management as well as capital
markets and insurance solutions. KKR aims to generate attractive
investment returns by following a patient and disciplined
investment approach, employing world-class people, and supporting
growth in its portfolio companies and communities. KKR sponsors
investment funds that invest in private equity, credit and real
assets and has strategic partners that manage hedge funds. KKR’s
insurance subsidiaries offer retirement, life, and reinsurance
products under the management of Global Atlantic Financial Group.
References to KKR’s investments may include the activities of its
sponsored funds and insurance subsidiaries. For additional
information about KKR & Co. Inc. (NYSE: KKR), please visit
KKR’s website at www.kkr.com and on Twitter @KKR_Co.
Contacts
Apollo:
For Investors:
Noah GunnGlobal Head of Investor RelationsApollo Global
Management, Inc.(212) 822-0540IR@apollo.com
For Media:
Joanna RoseGlobal Head of Corporate CommunicationsApollo Global
Management, Inc.(212) 822-0491Communications@apollo.com
Cardenas Markets:
Marisa KutanskyDirector of CommunicationsCardenas Markets
LLC(909) 923-7426MKutansky@cmkts.com
KKR:
Julia
Kosygina212-750-8300media@kkr.com
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