Market Overview

Fresh Market Rallies 20% Following $28.50/Share Bid From Apollo


The Fresh Market Inc (NASDAQ: TFM) had a fantastic February, jumping 20 percent over the month. The grocer's success seems to be continuing Monday morning, with a 20 percent rally following confirmation that Apollo Global Management LLC will buy the company.

In an approximately $1.4 billion in cash buyout, shareholders are set to receive $28.50 per share. This calculates to an approximately 53 percent premium over the February 10 closing price and an approximately 24 percent premium over last Friday's closing price.

The stock recently traded at $28.40, up 23.5 percent in the pre-market session.

Deal talk related to The Fresh Market began to circulate February 11, suggesting an acquisition might be in progress.

Over the weekend, a Reuters story suggested Apollo was near a deal to buy The Fresh Market.

Related Link: Private Equity And Kroger Could Partner In Fresh Market Takeout

Following the announcement, Rich Noll, lead independent director at The Fresh Market, stated, "We are pleased to have reached this agreement with Apollo, which follows a comprehensive review of strategic and financial alternatives that generated interest from numerous parties."

Noll continued, "After an open and thorough process, our Board concluded that this offer maximizes value for our stockholders."

According to a press release, "The transaction – which is expected to close in the second quarter of 2016 – is conditioned upon satisfaction of the minimum tender condition which requires that shares representing more than 50 percent of the Company's common shares […] be tendered, the receipt of approval under the Hart-Scott-Rodino (HSR) Antitrust Improvements Act of 1976 and other customary closing conditions.

Posted-In: Apollo Global Management LLC Brett BerryLong Ideas News M&A Pre-Market Outlook Movers Trading Ideas


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