A $676 million deal is laying the groundwork for The Fresh Market’s future growth, as it was announced yesterday that South American retailer Cencosud Internacional would acquire a 67 percent stake in the North Carolina-based grocer.
"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, the Chilean company stated in its recent filing.
Through this strategic acquisition, Cencosud will make its official entrance into the United States market, the filing went on to explain. The deal is subject to the fulfillment of certain conditions.
"The Fresh Market is one of the best supermarkets in the U.S.A. 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."
With its annual gross sales exceeding $1.9 billion last year, TFM currently operates 160 stores across 22 states and has approximately 10,159 employees.
To read the details of The Fresh Market's release in full, click here.
Keep following along with us as Deli Market News tracks the retailer’s growth following this critical acquisition.
