Smart & Final Stores, Inc. Agrees to be Acquired by Apollo Global Management, LLC

(Commerce, CA and New York, NY) The public equity firm, Apollo Global Management, LLC, is known for its specialization of leveraging buyout transactions and/or purchases.  Distressed securities, corporate restructuring, special situations and industry consolidations are the types of leveraged buyout transactions and/or purchases.  For the previously said, Apollo Global Management, LLC, is very successful at what it does.  In fact and for the year 2017, the aforementioned public equity firm, reported managing assets that have a value of $248.9 billion USD.  Additionally; it can brag about having offices in New York City, Los Angeles, San Diego, Houston, Bethesda, London, Frankfurt, Madrid, Luxembourg, Mumbai, Delhi, Singapore, Hong Kong, Shanghai and Tokyo.  Recently, Smart & Final Stores, Inc. revealed that, it has agreed to be acquired by Apollo Global Management, LLC.  The agreement to be acquired is in the form; of a definitive merger agreement, with specific investment funds that, are part of Apollo Global Management, LLC.  As part of the definitive merger agreement, Apollo Global Management, LLC, will acquire all of the outstanding shares of Smart & Final’s common stock.  The acquisition is expected to be completed, during, the third business quarter of the year 2019.

          During the third business quarter of the year 2019; when the acquisition will be completed, Apollo Global Management, LLC (NYSE:  APO) will have to purchase all of the outstanding shares of Smart & Final’s common stock.  Under the definitive merger agreement, the price has already been established.  The common stock is to be purchased for $6.50 USD for each share, and, in cash money.  The price represents a premium of approximately 25%.  The 25% premium, is based on Smart & Final’s earnings announcement that, was released on March 13th, 2019.  Overall, the $6.50 price represents a total value of $1.12 billion USD.  Upon completion of this transaction, Smart & Final Stores, Inc. (NYSE:  SFS) will cease to be a publicly traded company, under the New York Stock Exchange.  Instead, it will become a privately held portfolio company of Apollo Global Management, LLC.  Oddly enough and in the past, Smart & Final Stores, Inc. was owned in a similar way by Apollo Global Management, LLC.  In fact, the years were 2007 to 2012.  In November of the year 2012, Smart & Final Stores, Inc., was sold to Ares Management, LP.  Incidentally, Ares Management, LP, is the majority shareholder of Smart & Final’s common traded stock.  Obviously, Ares Management, LP is onboard and approves of the definitive merger agreement.  David Kaplan is a Co-Founder of Ares Management, LP.  Additionally, he is the Chairman of the Board of Smart & Final Stores, Inc.  Through a press statement, Mr. Kaplan said the following.  “We are pleased to fully support this transaction and we would like to thank the Smart & Final management team for its strong commitment and execution over the past seven years.  We wish the management team and employees continued success under new ownership.” 

          Kenneth Tuchman is the Chairman of the Strategic Review Committee.  Additionally, the aforementioned committee is part of Smart & Final’s Board of Directors.  Through a press statement, Mr. Tuchman said the following.  “This transaction is the result of diligent analysis and thoughtful strategic deliberations by our board of directors over many months.  Our board, with the assistance of independent financial and legal advisors, determined that this transaction, upon closing, will deliver immediate, significant and certain cash value to our stockholders.”  David Hirz is the Chief Executive Officer of Smart & Final Stores, Inc.  Through a press statement, Mr. Hirz said the following.  “This transaction is a testament to the strength of Smart & Final’s franchise, the quality of our store banners and the talent and expertise of our people.  Under the ownership of the Apollo Funds, Smart & Final will benefit from Apollo’s strategic guidance, which will help us accelerate our existing strategy in a dynamic industry environment.  We are excited about the future as we embark on a new chapter in our almost 150-year history, with a strategic partner that understands our strengths, culture and customer-centric philosophy.  We would like to thank Ares Management for its partnership and support in helping us grow our business to where we are today.” 

          To end, Apollo Global Management, LLC did release a press statement.  Andrew Jhawar is a Senior Partner.  Additionally, he is also the Head of the Consumer and Retail Group at Apollo Global Management, LLC.  Through a press statement, Mr. Jhawar said the following.  “We are very excited for our funds to be re-acquiring Smart & Final and expect to leverage Apollo’s deep expertise and history of success in food retail to support the Company as it embarks on its next chapter.  The unique differentiation and strong value proposition of both the Smart & Final and Smart Foodservice banners are evident to us and we welcome the opportunity to augment and enhance the experience for the Company’s household and business customers.  We look forward to working with the management team as well as the over 12,000 team members to capitalize on the Company’s position in the marketplace.”  As previously stated, Smart & Final Stores, Inc. recently revealed that, it has agreed to be acquired by Apollo Global Management, LLC.  The agreement to be acquired is in the form; of a definitive merger agreement, with specific investment funds that, are part of Apollo Global Management, LLC.  As part of the definitive merger agreement, Apollo Global Management, LLC, will acquire all of the outstanding shares of Smart & Final common stock.  Lastly; the acquisition is expected to be completed, during, the third business quarter of the year 2019.

 

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Written from Press Release

Registered Writer with

PR Newswire Association, LLC

R-Berumen28

04/20/2019

 

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