Chilean Cencosud purchases majority stake of Fresh Market grocery chain
2022.05.11 17:11
FILE PHOTO: The logo of retailer Cencosud is seen at its corporate building in Santiago, Chile July 23, 2019. REUTERS/Rodrigo Garrido
The Chilean retail group Cencosud has announced its purchase of 67% of The Fresh Market (TFM) supermarket chain in the United States, in a deal valued at $676 million and marking its first venture in the U.S. market.
In a filing to the Chilean securities regulator on Tuesday, Cencosud said it had reached the agreement to buy the grocery chain, which operates 160 stores and whose controlling fund is managed by affiliates of Apollo Global Management (NYSE:APO).
“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% stake,” the Chilean firm said in the filing.
The disbursement may be adjusted “according to TFM’s cash, debt, working capital and certain other variables on the date the transaction becomes effective,” the filing added.
TFM, which reported revenues of $1.93 billion in 2021 and an adjusted EBITDA of $196 million, is a premium specialty supermarket that operates in 22 states, mainly in Florida.
The transaction is subject to the fulfillment of certain conditions, including authorization by U.S. authorities.
(Report by Fabián Andrés Cambero; Editing by Paul Simao)
