Weighing Machine • 34 Comments
DAG Investments • 19 Comments
Wed, Oct. 19, 10:14 AM
- Rite Aid (RAD -4.5%) tumbles in early trading after the NY Post reports that Kroger (KR +0.3%) may pass on buying the 650 stores that Walgreens (WBA -1.2%) and RAD would need to sell to gain regulatory approval for their planned merger.
- KR may decide not to buy because the Federal Trade Commission, now a year into its merger review, recently told the company that the stores could not be purchased and closed, with the operations moved inside the grocery stores, according to the report.
- A WBA-RAD merger would create the biggest U.S. drug chain, and the FTC could sue to block the deal without a solution to the stores, but the report quotes a source as saying that both the FTC and WAG remain motivated to find a remedy.
Wed, Jul. 20, 3:40 PM
- Kroger (KR +0.5%) announces an agreement for Axium Pharmacy Holdings to acquire the outstanding shares of Modern HC Holdings. Axium is a wholly-owned subsidiary of Kroger.
- The deal will create a combined specialty pharmacy that will operate as a wholly-owned subsidiary of the company.
- "This strategic investment will accelerate the growth of Kroger's health and wellness business," says Senior VP Robert Clark.
- The transaction is subject to certain regulatory approvals, including from the FTC. Financial terms were not disclosed.
- Source: Press Release
Mon, Mar. 14, 7:43 AM
- Shares of The Fresh Market (NASDAQ:TFM) soar in early trading after the company agrees to a cash tender offer from P-E firm Apollo Global Management (NYSE:APO).
- The P-E firm will pay $28.50 per share for the grocery store chain for a deal price of $1.36B.
- Under the terms of the deal, The Fresh Market has 21 days to solicit other offers, putting Kroger (NYSE:KR) on a short clock.
- Previously: Reuters: Apollo nears deal to acquire The Fresh Market (Mar. 13 2016)
- TFM +22.93% premarket to $28.25.
Sun, Mar. 13, 5:37 AM
- Private equity firm Apollo Global Management (NYSE:APO) is nearing a deal to acquire The Fresh Market Inc (NASDAQ:TFM) for $28.50 per share in cash, or more than $1.3B, in a move that could derail bids from Kroger (NYSE:KR), KKR, and TPG Capital.
- Sources told Reuters that an agreement could be announced as early as Monday, but cautioned that a deal had not yet been finalized and was still possible to be amended or fall apart at the last minute.
Fri, Feb. 12, 9:26 AM
- Stifel Nicolaus sets its sights on the grocery store sector after yesterday's dramatic report of Kroger's (NYSE:KR) interest in a buyout of The Fresh Market (NASDAQ:TFM).
- The investment firm gives Kroger a Buy rating and $45 price target after digesting the consolidation potential. Kroger's M&A spree over the last few years already includes Roundy's, Vitacost, and Harris Teeter - although management has been credited with successful integration strategies.
- Investors have been rewarded from Kroger's growth push with shares of the grocery store chain outperforming the S&P 500 Index by a wide margin (+215% vs. +36% over 5 years).
- Sprouts Farmers Market (NASDAQ:SFM) is also given a Buy rating from Stifel and assigned a PT of $27.
- Previously: The Fresh Market closes +22% on buyout spike, more room to run? (Feb. 11 2016)
- SFM +2.1% premarket to $22.55 vs. a 52-week range of $16.41 to $38.45.
- TFM +1.81% premarket to $23.09 vs. a 52-week range of $17.81 to $42.09.
- WFM +1.90% premarket to $29.48 vs. a 52-week range of $28.07 to $57.57.
- KR +1.95% premarket to $37.14 vs. a 52-week range of $27.32 to $42.75.
Thu, Feb. 11, 4:11 PM
- Shares of The Fresh Market (NASDAQ:TFM) accelerated into the close to end the day with a tidy 22% gain with Kroger reportedly bidding for the chain.
- Morgan Stanley thinks there could be some upside left as the bidding and strategic actions plays out, calling out a $30 deal price in a fresh note.
- Kroger (NYSE:KR) ended the day down a mild 1.1%, with some traders uneasy over the potential M&A play. If Kroger does win the bidding for TFM, it plugs a nice gap the grocery store operator has in the Northeast.
- Kroger's supermarket map (via Dow Jones' Kevin Kingsbury)
- Previously: Reuters: Kroger seek buyout of The Fresh Market (Feb. 11)
- Previously: Grocery store stocks buzzing off of consolidation talk (Feb. 11)
- Previously: The Fresh Market +13% with Kroger and others in bidding process (Feb. 11)
Thu, Feb. 11, 1:59 PM
Nov. 11, 2015, 9:06 AM
- Kroger (NYSE:KR) snaps up Roundy's (NYSE:RNDY) for $3.60 per share in an all-cash deal.
- The acquisition is expected to be slightly accretive to Kroger earnings in the first year after closing. Cost savings will be piled back into growing the Roundy's business.
- Roundy's +64.2% to $3.58 in premarket trading.
Oct. 20, 2015, 8:38 AM
- The Fresh Market (NASDAQ:TFM) resumes trading after announcing it will start a strategic review.
- Shares are up 2.43% premarket to $27.77 in early trades. Some traders think that The Fresh Market already has a healthy M&A premium baked into share price.
- An interest question on The Fresh Market is what public company might take a look at an acquisition. In the past, Kroger (NYSE:KR) has been thrown out as a grocery store operator that could drive some synergies. SA users may have their own ideas in the comment stream.
- Previously: The Fresh Market halted (Oct. 20 2015)
- Previously: The Fresh Market to conduct strategic review (Oct. 20 2015)
May 14, 2015, 9:47 PM
- Consolidation in the grocery industry could pick up even more, observes Supermarket News.
- A large merger between Albertsons and Safeway (NYSE:SWY) has been followed by talks between Delhaize (NYSE:DEG) and Ahold (OTCQX:AHONY).
- The increased push by Wal-Mart and Target in the sector has added pressure to leverage store growth through M&A.
- "There is mounting pressure in the supermarket industry to consolidate operations to drive better purchasing power and leverage distribution and technology platforms," notes Wolfe Research.
- Kroger (NYSE:KR) is seen as a likely candidate to look for a chain to acquire.
- Previously: Ahold, Delhaize confirm merger talks (May 12)
- Grocery stocks: RNDY, SVU, VLGEA, WFM, CASY, IMKTA, OTCPK:PUSH, TFM, SFM, WMK.
May 11, 2015, 10:52 AM
- Delhaize (NYSE:DEG) is up 13.3% after reports on a merger with Ahold (OTCQX:AHONY +3.8%) drove up shares listed in Europe earlier today.
- The talk of industry consolidation has some other U.S. grocery stocks ahead of market averages as well.
- Grocery gainers: Kroger (NYSE:KR) +1.0%, Whole Foods Market (NASDAQ:WFM) +1.2%, Roundy's (NYSE:RNDY) +1.0%, Supervalu (NYSE:SVU) +1.0%, Fairway Group (NASDAQ:FWM) +0.9%, Ingles Markets (NASDAQ:IMKTA) +9.8% with earnings also a factor.
- Previously: Ahold, Delhaize surge on merger reports
Jul. 2, 2014, 8:10 AM
Mar. 7, 2014, 9:20 AM
Jul. 9, 2013, 8:07 AM
More on Kroger (KR) - Harris Teeter (HTSI): The combined grocery operator will have 2,631 supermarkets operating across 34 states with the deal appearing to be focused on squeezing cost savings from the increased scale. Kroger says it will attempt to maintain its 2.00 - 2.20 debt -to-EBITDA ratio after the deal closes by paying down some debt. The narrow 1.8% premium paid to Harris Teeter shareholders is reflective of the 34% runup the stock has seen since the company announced it was exploring strategic alternatives. HTSI +1% premarket to $49.00.| Jul. 9, 2013, 8:07 AM
Jul. 9, 2013, 7:13 AM
More on Kroger (KR) - Harris Teeter (HTSI): As part of the acquisition, Kroger will assume $100M in outstanding debt but indicates it will continue with its quarterly dividend. The grocery store chain expects to add $0.06 to $0.09 to EPS in accretive value in the first full year after the merger due to the significant cost savings it will churn up.| Jul. 9, 2013, 7:13 AM | 1 Comment
Jul. 9, 2013, 7:07 AM