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Smart & Final becomes private company

Warehouse-style grocer closes $1.12 billion buyout deal

Russell Redman

June 20, 2019

2 Min Read
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Smart & Final Stores today completed a $1.12 billion deal to be acquired by private equity firm Apollo Global Management LLC.

With the transaction’s closing, Smart & Final became a private company and its shares ceased trading on the New York Stock Exchange under the symbol “SFS” effective June 20. Under the agreement, announced in mid-April after speculation that Smart & Final was on the selling block, Apollo purchased the warehouse-style grocery chain for $6.50 in cash per share of outstanding common stock.

“As we turn the page to the next chapter in our almost 150-year history, we are excited to again work with Apollo to capitalize on our unique value proposition in this dynamic grocery marketplace,” Smart & Final President and CEO David Hirz said in a statement. “We look forward to continued evolution in the Smart & Final and Smart Foodservice store banners, as we endeavor to provide the best shopping experience for our household and business customers across both in-store and digital sales channels.”

New York-based Apollo is a previous owner of Smart & Final. Before the transaction, Smart & Final was majority-owned by private equity firm Ares Management. Los Angeles-based Ares had acquired its majority stake in Smart & Final from Apollo in November 2012 for $975 million. About two years later, the retailer completed an initial public offering at $12 per share. Funds managed by affiliates of Apollo had owned Smart & Final from 2007 through the sale of the ownership stake to Ares.

Related:First-quarter sales edge up at Smart & Final

Smart & Final and Apollo haven’t announced leadership plans for the Commerce, Calif.-based grocery chain. For its 2018 fiscal year ended Dec. 30, Smart & Final saw net sales rise 3.7% to $4.74 billion, with same-store sales up 1.2%. The company reported a net loss of $112.2 million, or $1.54 per diluted share, down from a net loss of $138.9 million, or $1.92 per diluted share, in 2017.

Currently, Smart & Final operates 324 stores, including 257 Smart & Final Extra! and legacy Smart & Final locations plus 67 Smart Foodservice Warehouse stores.

Smart & Final Extra! stores blend a wholesale club-style store — but no membership fee — with a traditional supermarket in a one-stop shop, including farm-fresh produce and natural/organic options. The Smart Foodservice stores, located in the Pacific Northwest and Northern California, offer a “no-frills” warehouse format that mainly targets business customers, such as restaurants, caterers and other foodservice businesses.

During fiscal 2019, Smart & Final plans to open one Smart & Final Extra! store and four Smart Foodservice Warehouse stores and to relocate one or two Smart & Final stores.

Related:Smart & Final agrees to $1.12 billion buyout

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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