Market Overview

The Road To A Merger: The Fresh Market

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Shares of The Fresh Market Inc (NASDAQ: TFM) soared more than 20 percent as the company reached a deal with Apollo Global Management LLC (NYSE: APO) to be acquired for $28.50 per share.

Here's a look at the past year events that led to this move.

  • March 10, 2015: Bank of America downgrades stock from Buy to Neutral due to valuation and market uncertainty
  • May 21, 2015: Reports Q1 Earnings, mixed report with top-line revenues missing estimates, while earnings beat analyst consensus.
  • July 16, 2015: RBC Capital's William Kirk says The Fresh Market has lowest employee satisfaction score in U.S. Food Retailer review.
  • August 17, 2015: BMO Capital's Kelly Bania downgrades company to market perform and cuts price target from $44 to $28, citing lackadaisical response to an aggressively changing market.
  • August 20, 2015: Company misses Q2 sales and earnings estimates, cuts fiscal year 2016 and 2017 guidance.
  • August 21, 2015: Credit Suisse, Morgan Stanley, Deutsche Bank, Wedbush, and SunTrust all lower price targets in disappointed notes. Shares plunge to 52-week low of $21.05
  • September 2, 2015: The Fresh Market Names Richard Anicetti President, CEO.
  • October 16, 2015: Reuters reports Fresh Market founder exploring sale of company to PE firm.
  • October 20, 2015: Shares halted news pending, announces they will conduct strategic & financial review of the business.
  • November 19, 2015: Company reports Q3 results that are in line with estimates.
  • February 11, 2016: Rumors circulate Kroger may be interested in The Fresh Market, shares soar 20 percent to $22.25.
  • March 12, 2016: Reuters reports Apollo Global Management near $1.3 billion deal for The Fresh Market.

Despite talks of the market being highly saturated over the past year, peers of The Fresh Market saw little movement after the Apollo Management deal was announced. Whole Foods Market, Inc. (NASDAQ: WFM) was trading around $33, while Sprouts Farmers Market Inc (NASDAQ: SFM) was at $28.10, both under 1 percent moves on the day.

Posted-In: Analyst Color News M&A Movers

 

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