BREAKING NEWS… Sprouts and Henry’s are planning to join forces! You may have heard the rumors or read about this online and now, at last, it can be confirmed: we’re bringing together two branches of the same family tree. Check for more details.
Here’s the press release:
SOURCE Smart & Final Stores LLC
– Transaction Further Strengthens Smart & Final’s Financial Position
– Smart & Final Plans Continued Investment in Its Business
LOS ANGELES, Feb. 16, 2011 /PRNewswire/ — Smart & Final Stores LLC today announced that an agreement has been reached by Smart & Final to sell its Henry’s Farmers Market subsidiary to Sprouts Farmers Market. Private equity firm Apollo Management L.P. (“Apollo”) will be the majority owner of the combined Sprouts-Henry’s company. Apollo will also remain the principal equity owner of Smart & Final.
“The sale of Henry’s provides Smart & Final with a healthy financial return on our 3 1/2 year investment in the Henry’s stores, and the cash proceeds will further deleverage our already strong balance sheet. Smart & Final is a dynamic company with solid growth prospects in each of our store banners,” said Dave Hirz, president of Smart & Final. “With our steady cash flow and an undrawn $150 million revolving credit facility, we have ample liquidity to actively reinvest in our business with a 2011 capital program that includes at least two new stores and over 40 store remodeling projects. I believe the outlook for our company is very positive.”
The proposed transaction is expected to close by the end of the first quarter 2011, and Smart & Final will continue to support its 43 existing Henry’s Farmers Market and Sun Harvest stores with various administrative services for an extended period after closing through a transition services agreement.
As closely held companies, Smart & Final and Sprouts do not disclose financial information. Specific terms of the transaction were not disclosed.
Originally founded in 1871 in downtown Los Angeles, Smart & Final Stores LLC operates approximately 250 retail stores, excluding the Henry’s & Sun Harvest banners. Under the Smart & Final, Smart & Final Extra!, Smart Foodservice Cash & Carry and SmartCo Foods banners, the company operates non-membership warehouse stores for food and foodservice supplies in California, Oregon, Washington, Arizona, Nevada, Idaho and northern Mexico. For more information, visit the company’s website at www.smartandfinal.com.
©2011 PR Newswire. All Rights Reserved.
This site has some interesting information from last month when the sources reported the talks had been taking place:
