New information has surfaced that suggests Kroger Co. is making moves towards a possible acquisition of The Fresh Market. “People familiar with the matter,” told Reuters that The Fresh Market has been exploring a sale, and Kroger has already entered its bid into the ring.
Reuters reports that Kroger is in its second round of the auction process for The Fresh Market, along with other such interested parties as firms like Apollo Global Management, KKR & Co, and TPG Capital.
Reuters’ sources, who have asked not to be named, say that currently there is no guarantee that Kroger will be the party to win the auction or that The Fresh Market has even agreed definitively to sell itself at all.
This revelation comes on the heels of several less-than-stellar financial quarters for The Fresh Market, along with the company’s CEO, Rick Ancetti announcing his detailed turnaround plan. In his plan, Ancetti suggested that by revamping several programs, including perishables, The Fresh Market would be able to recover from its falling profits in “about three to five years.”
As of October, The Fresh Market announced it had retained investment bank JP Morgan Chase to assist in a review of strategic options, including the potential sale of the company.
Kroger has not been secretive about its desire to add even more locations to its repertoire, either. Kroger acquired Harris Teeter for $2.4 billion in 2014, and at the close of last year, the Cincinnati-based retail giant acquired Roundy's for $800 million.
Following the first inkling of this possible acquisition by Reuters, shares of The Fresh Market rose by as much as 23 percent, trading up 16 percent at $21.57 in early afternoon trading in New York on Thursday, giving it a market value of close to $1 billion, the news source reports.
