Apollo to Generate 5.3x its Investment When Sprouts Farmers Markets Goes Public

<p>Apollo Global Management has the potential to increase the value of its investment by more than 5.3 times when Sprouts Farmers Markets goes public next week. Sprouts has set the terms of its IPO and the company is selling 18.5 million shares at $14 to $16 each via joint bookrunners Goldman Sachs &amp; Co., Credit Suisse and BofA Merrill Lynch, according to a July 19 regulatory filing as reported by peHUB. Sprouts is expected to trade on the Nasdaq under the ticker “SFM” and to price its IPO on Thursday, Aug. 1st. It will likely trade the next day, the publication reports.</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p>In April of 2011, Apollo acquired a majority stake, 58.5%, in Sprouts for $214 million. Sprouts then acquired Henry’s Farmer’s Markets from Smart &amp; Final, which was also owned by Apollo. Sprouts then paid out a $199.1 million special dividend to “all members of the company,” according to the S-1. peHUB learned that Apollo, didn’t receive any of this.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">In 2013, Sprouts has issued a $282 million dividend to shareholders, including Apollo. The buyout shop, which owns 52% of Sprouts, received about $147 million.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">Apollo is not selling shares in the Sprouts IPO. Before the offering, Apollo owned 65.2 million shares, or nearly 52% of shares outstanding, the report states. Apollo’s stake will fall to 45.4% after the IPO. At $15 a share, the mid-point of the IPO range, Apollo’s stake could be worth $978 million once Sprouts goes public.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">Sprouts, which sells fruits, vegetables and herbs, operates 163 stores in eight states, including Arizona, California, Texas and Colorado.</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href=" http://www.pehub.com/2013/07/23/apollo-make-5-3x-its-money-sprouts-farmers-markets" target="_new"> Apollo Global Management</a></p><hr class="legacyRuler"><hr class="invisible minimal-padding">