LOS ANGELES — Henry's Farmers Market, a division of Smart & Final  here, is in discussions regarding a possible acquisition by Phoenix-based Sprouts Farmers Market, a Smart & Final spokesman told SN Thursday.
"But the discussions are still at a preliminary stage and no agreement has been reached," he noted. He also said there have been discussions between the two companies in the past "that didn't get very far. But they have gone further this time than in the past."
A potential deal between the two chains was first reported last week by the blog freshneasybuzz.blogspot.com .
Henry's, a farmers' market-style retail format with a heavy emphasis on perishables, operates 43 stores — 34 in Southern California under the Henry's banner and nine Texas-based stores under the Sun Harvest banner. Sprouts executives could not be reached for comment. Sprouts operates 54 farmers' market-style stores — 17 in Southern California; 15 in Arizona; 14 in Colorado; and eight in Texas.