Cencosud S.A. (SNSE:CENCOSUD) entered a definitive agreement to acquire 67% stake in The Fresh Market, Inc. from Apollo Global Management, Inc. (NYSE:APO) for approximately $410 million on May 11, 2022. The total enterprise valuation of The Fresh Market, Inc. is $1.568 billion. Cencosud has agreed to invest $676 million to purchase a combination of primary and secondary equity in The Fresh Market.

As a result of the transaction, Cencosud will acquire a 67% stake in The Fresh Market, with the current shareholders owning the remaining 33%. The primary cash component of $265 million will strengthen the balance sheet of The Fresh Market, reducing The Fresh Market's net leverage to 2.7x EBITDA. Cencosud will finance the investment primarily through cash on its balance sheet. Existing The Fresh Market shareholders, including the Apollo Funds, the Berry family, and The Fresh Market's management, will retain a minority equity interest in The Fresh Market. The Fresh Market reported revenue of $1,933 million in 2021 with an adjusted EBITDA of $196 million.

The Fresh Market's Board of Directors (which Cencosud will have majority representation on) and its existing management team have vast experience in the American retail industry, and management will continue to operate the business and the existing shareholders will retain an equity stake in the Company, thereby contributing to the continued success of The Fresh Market and its strong corporate governance. J.P. Morgan is acting as exclusive financial advisor to Cencosud and Milbank LLP is serving as legal advisor. Credit Suisse is serving as exclusive financial advisor to The Fresh Market and Apollo Global Management, Inc. (NYSE:APO) Simpson Thacher & Bartlett LLP is serving as legal advisor.