Sprouts Completes Henry’s Merger

Sprouts Completes Henry’s Merger

PHOENIX — Sprouts Farmers Market here said Monday it has completed its merger with Henry's Farmers Market and Sun Harvest Farmers Market and plans to spend the next few months "carefully analyzing best practices and products [of each one] to become more than just the sum of our parts."

PHOENIX — Sprouts Farmers Market [3] here said Monday it has completed its merger with Henry's Farmers Market and Sun Harvest Farmers Market and plans to spend the next few months "carefully analyzing best practices and products [of each one] to become more than just the sum of our parts."

[3]

In a letter to customers, Doug Sanders, president and chief executive officer of Sprouts, said, "As similar as our companies always have been, it will take time, patience and great diligence to merge them into one."

Sanders said new products will begin showing up on store shelves in the next few weeks, with new programs due by late spring or early summer and new uniforms by September. "And eventually the names of the Henry's and Sun Harvest stores will change over to Sprouts," he added.

Henry's and Sun Harvest were sold to Sprouts by Smart & Final [4], Los Angeles. With the deal completed, Sprouts will operate 99 stores (56 Sprouts in Arizona, Colorado, Nevada, New Mexico, Texas and Utah; 34 Henry's in Southern California; and nine Sun Harvests in Texas), with estimated sales exceeding $1 billion.

The merger agreement, announced in February, called for Apollo Management, the New York-based investment firm that owns Smart & Final, to sell Henry's and Sun Harvest to Sprouts for an undisclosed amount and become the majority owner of Sprouts. Financial details of the merger were not disclosed.