Cencosud Internacional Acquires 67 Percent Stake in The Fresh Market; Jason Potter and Matias Videla Comment
CHILE & NORTH CAROLINA - In a strategic move, today it was announced that South American retailer Cencosud Internacional would acquire a 67 percent stake in North Carolina-based grocer, The Fresh Market Holdings (TFM) for $676 million.
"Cencosud has demonstrated that it is a world-class retailer with exceptional margins, and we look forward to sharing best practices across our businesses. The Fresh Market has experienced strong financial momentum over the last few years and this partnership with Cencosud will allow the company to further capture market share as we expand our footprint in our core Southeast market and beyond," said Jason Potter, Chief Executive Officer of The Fresh Market. "Our entire team looks forward to the partnership with the Paulmann Family, Matias [Videla], and the team at Cencosud."
In addition to the 67 percent stake, the agreement also establishes the possibility that through legal mechanisms that are practiced in the United States, after a certain period of time, Cencosud Internacional can reach a 100 percent share, explained a filing from the Chilean company.
With this acquisition, Cencosud will make its official entrance into the United States market.
"The Fresh Market is one of the best supermarkets in the USA. Widely recognized by market specialists and customers alike for its customer-centric culture, excellence in fresh produce and memorable shopping experience in its stores," commented Matias Videla, Chief Executive Officer of Cencosud. "This unique value proposition is a result of the successful strategy executed and the commitment of a team of highly experienced executives led by Jason and Andy. We are very pleased to make our first investment in the American market through a partnership of the prestige of Apollo Global Management with extensive experience in the retail market. Our team is very excited to start working together to accelerate the growth and value of the company."
TFM currently operates 160 stores across 22 states, has approximately 10,159 employees, and its annual gross sales exceeded $1.9 billion last year.
To read the details of The Fresh Market's release in full, click here.
The deal is subject to the fulfillment of certain conditions.
How will this acquisition impact The Fresh Market’s growth in the U.S.? Keep reading AndNowUKnow for updates.