PHOENIX — Sprouts Farmers Market here on Wednesday said it has merged with Henry's Farmers Market under the majority ownership of investment firm Apollo Management. Terms of the transaction were not disclosed.
The companies were previously reported to have been in talks about a possible merger (see related story). The combined chain will eventually operate under the Sprouts Farmers Market name and is projected to have more than $1 billion in annual sales. The two currently operate 98 total stores, with 10 more openings planned for 2011.
To execute the transaction, Apollo will make an equity investment in Sprouts and will purchase the Henry's stores from Apollo's own Smart & Final division, based in Commerce, Calif. Sagent Advisors acted as financial advisors to Sprouts.
The merger reunited two banners that were founded by two generations of the Boney family — Henry Boney founded Henry's, among other businesses, before selling it to Wild Oats in 1999. (It was later sold to Smart & Final when Whole Foods Market acquired Wild Oats in 2007.) Stan Boney, a son of Henry Boney, had worked with his father at Henry's and, together with other family and friends, launched Sprouts in 2002.
"The combination of Sprouts and Henry's is an exciting chapter in our family's lives, and we look forward to continuing to deliver on our mission of helping America eat healthier, live longer and spend less," said Stan Boney, chairman of Sprouts, in a prepared statement. "Apollo is one of the most experienced and successful private equity firms in the nation and we are excited about their support for our business model and look forward to working together with [Apollo Senior Partner Andrew S. Jhawar] and his team."