Smart & Final Considers Sale for $1 Billion
NEW YORK, NY - 2019 has been the year of following along with the Smart & Final acquisition. Reports began circulating in February of the possibility of the retailer exploring a sale—a sale that didn’t come to fruition until April and then wasn’t completed until June. Now, it appears Smart & Final’s warehouse business is back on the market, rounding out the grocer's acquisition year.
According to a report by Nasdaq, the private equity firm that acquired Smart & Final, Apollo Global Management, is considering selling the warehouse store business of Smart & Final. People familiar with the matter disclosed to the news source that Apollo is seeking more than $1 billion for the 70-warehouse-store-strong business—the firm originally purchased Smart & Final for $1.1 billion.
The news source also noted that Apollo is trying to catch the eye of major grocery retailers and distributors by putting the more lucrative division of Smart & Final up for grabs—the sale would exclude the retailer’s grocery store business. The firm has recruited Credit Suisse Group and Deutsche Bank to run the auction of the division.
Who will snap up Smart & Final? And how will this billion-dollar acquisition affect the grocery retail market? AndNowUKnow will continue to report.