The Fresh Market Is Now A Buy As A Strategic Review Commences
Alpha Gen Capital
Alpha Gen Capital
The Fresh Market - Chickens Come Home To Roost
Fri, Apr. 22, 9:10 AM
- The tender offer expired at midnight, with a total of 32.1M shares, or about 68.2% of the float, offered at a price of $28.50 each.
- Funds affiliated with Apollo (NYSE:APO) will thus take The Fresh Market (NASDAQ:TFM) private.
- Source: Press Release
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Mon, Apr. 4, 3:49 PM
- The go-shop period for The Fresh Market (TFM -0.4%) expired without anymore bidders stepping up to the plate, according to a SEC filing.
- Apollo Global Management (APO -0.6%) now has the green light to proceed with its acquisition of the specialty grocery chain.
- SEC Form 14D-9
- Now read Is Online Grocery Delivery A Threat To The Traditional Supermarket?
Mon, Mar. 14, 12:45 PM
Mon, Mar. 14, 9:17 AM
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.
Mon, Mar. 7, 11:26 AM
- Grocery store stocks are ahead of broad market averages. The sector is under for watch for M&A developments, while some macroeconomic factors have also turned more favorable this year.
- Gainers today include Whole Foods Market (WFM +6.5%), The Fresh Market (TFM +2.6%), Ingles Markets (IMKTA +2.4%), Natural Grocers by Vitamin Cottage (VLGEA +1.3%), and Supervalu (SVU +5%).
Fri, Mar. 4, 8:38 AM
- During Kroger's (NYSE:KR) earnings call, CEO Rodney McMullen was asked about how the company is addressing potential grocery game changers like Blue Apron and AmazonFresh. McMullen said he's confident that the company is evolving right along with the customer.
- M&A was on the mind of analysts with The Fresh Market (NASDAQ:TFM) a rumored target. McMullen danced around it, saying "we're really looking for companies that bring something to us that we don't have today."
- A pair of investment firms took action on Kroger today. Macquarie downgrades Kroger (KR) to an Underperform rating from Neutral, while Pivotal Research reduces its price target on the grocery store stock to $44 from $46.
- Kroger earnings call transcript
- Shares of Kroger are down 0.42% premarket to $37.65 after falling 7% yesterday.
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, 2:30 PM
- The Fresh Market (NASDAQ:TFM) breaks away from a trading halt to soar 13.40% to $21.07 in reaction to a report of a Kroger (KR -1.3%) acquisition play. It's been three weeks since TFM was over the $20 mark.
- The report from Reuters indicates bidding from PE firms and other companies is already in the second round.
- The breadth of interest is helping push up shares of Sprouts Farmers Market, Whole Foods Market, and Ingles Markets as well.
Thu, Feb. 11, 1:59 PM
Mon, Feb. 1, 10:46 AM
- Strong volume numbers out of Sysco this morning aren't going unnoticed by grocery store investors.
- With a large percentage of the market showing losses, Whole Foods (WFM +1.9%), The Fresh Market (TFM +0.1%), and Kroger (KR +1.8%) are all higher. Related food seller Casey's General Stores (CASY +0.9%) is also in positive territory.
- Previously: 52-week high for Sysco after earnings shine (Feb. 1)
Fri, Jan. 29, 10:28 AM
- Grocery store stocks are early outperformers on the day.
- Supervalu (SVU +6.3%), Kroger (KR +2.6%), The Fresh Market (TFM +2.7%), SpartanNash (SPTN +2.8%), Sprouts Farmers Market (SFM +2.8%), and Whole Foods Market (WFM +3.2%) are all drawing in buyers.
- Traders are pointing to the macroeconomic climate and valuation as catalysts. Earlier, SA contributor Hawkinvest pitched the case that SVU is vastly undervalued.
Dec. 10, 2015, 10:30 AM
- The organic grocery store sector is making some modest gains with Whole Foods Market (WFM +3.3%), Fairway Group (FWM +3%), Sprouts Farmers Market (SFM +2.6%), and The Fresh Market (TFM +2.5%) all higher than broad market averages.
- The group has had a very rough year due to a high level of competition and some saturation in key markets. Consolidation is still seen as a potential way out for some chains.
- YTD returns: FWM -76%, SFM -24%, TFM -40%, WFM -38%.
Nov. 23, 2015, 2:23 PM
- A pricing study by Bloomberg Intelligence indicates Whole Foods Market (WFM -1.3%) is still more expensive than rival Trader Joe's.
- A basket of 20 Thanksgiving Day menu items from Whole Foods was 22% higher at $87.91 than the same shopping list at Trader Joe's which cost $72.28. Last year, the gap between the two chains was a narrow 0.9%.
- A comparable Thanksgiving basket from The Fresh Market (TFM +1.4%) came in significantly more expensive than Whole Foods at $101.83.
- Analysts note that higher pricing in the specialty grocery sector becomes problematic when consumer perception shifts. Recent earnings reports indicate Whole Foods may be on the wrong side of that line.