Chile’s Cencosud acquires The Fresh Market, enters U.S market
Chilean retailer Cencosud has announced an agreement to acquire The Fresh Market supermarket chain in the U.S., starting with a 67% stake for $676 million, marketing its entry into the US grocery market.
According to a statement filed with the Chilean securities regulator SVC, Cencosud has closed the agreement for the majority share through its international subsidiary, and could increase its participation to 100% in the future.
Cencosud is headquartered in Chile, but operates over 900 stores through a variety of retail brands throughout South America, including Argentina, Brazil, Peru and Colombia.
The Fresh Market is currently owned by Apollo Global Management, which acquired NASDAQ listed shares of the company’s common stock in April 2016. It works with premium food products, with an emphasis on fresh perishables. According to its investor affairs website, it currently operates 159 stores in 22 states across the United States.
Cencosud also announced a $100 million acquisition of Brazilian supermarket chain GIGA, a 10 store operation in the South American nation, according to Reuters.