Apollo Global Eyes $1.5B Sale Of Hispanic Grocery Chain Heritage Grocers Group: Report

• According to a Reuters report, the move comes at a time when there has been a decline in consumer demand in Latino communities across the U.S.
• Reuters noted that Apollo Global was in talks with investment bank UBS regarding the sale of the grocery chain.
• Heritage Grocers Group makes more than $2 billion in revenue.

Apollo Global Management (APO) is reportedly exploring a sale of its Hispanic grocery chain Heritage Grocers Group, in a deal that could value the company around $1.5 billion.

According to a Reuters report, citing people familiar with the matter, the move comes at a time when there has been a decline in consumer demand in Latino communities across the U.S. due to growing concerns over immigration enforcement.

How Much Revenue Does Heritage Grocers Generate?

The report noted that Apollo Global was in talks with investment bank UBS regarding the sale of the grocery chain.

The people told Reuters that Heritage Grocers Group makes around $150 million in earnings before interest, taxes, depreciation, and amortization and generates more than $2 billion in revenue. The grocery chain owns El Rancho Supermercado, Cardenas Markets, and Tony's Fresh Market under its banner.

Sluggish Consumer Spending

According to the Reuters report, the grocery chain has struggled this year amid sluggish consumer spending, prompting credit downgrades from ratings agencies in the spring. Rating agencies have cited the downgrade to tariff-related uncertainty. 

The report noted that mass deportations in the Hispanic community and Immigration and Customs Enforcement raids have also caused Heritage's core Hispanic customers to be mindful about when, where, and how they shop.

Retail sentiment on Apollo dipped to ‘bearish’ from ‘neutral’ compared to a day ago, with message volumes at ‘normal’ levels, according to data from Stocktwits.

Shares of Apollo have declined by over 23% this year. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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