Apollo Global Management has acquired Cardenas Markets (Ontario, CA), one of the largest Hispanic grocery chains in the U.S., and will merge it with Tony’s Fresh Market (Itasca, IL), another regional grocer in the firm’s portfolio.
New York-based Apollo acquired Cardenas from KKR, a fellow private equity outfit in the Big Apple. In Apollo’s announcement of the acquisition, the firm said Cardenas and Tony’s will form a Hispanic- and ethnic-focused grocer that will continue operating under their respective brands and local leadership.
The Cardenas-Tony’s footprint will span 78 stores across four states with approximately $1.8 billion in combined revenues. Cardenas Markets CEO Doug Sanders will serve as CEO of the combined company and the Cardenas chain, while Frank Ingraffia will continue as the CEO of the Tony’s chain.
Cardenas has 59 stores in California, Nevada and Arizona. Tony’s, which was acquired by Apollo in April, operates 19 locations across the Chicago market and surrounding suburbs.
Financial terms of the acquisition were not disclosed. The deal is expected to close in the third quarter of this year.