CINCINNATI --The Kroger Co., the largest supermarket chain in the United States as well as an operator of nearly 800 convenience stores, is in the second round of an auction process to acquire smaller-format specialty grocer Fresh Market Inc., said a Reuters report.
The report also says three other firms--Apollo Global Management LLC, KKR & Co LP and TPG Capital LP--are among the buyout firms participating in the auction.
There is no certainty that Kroger will prevail in the auction or that Fresh Market will agree to sell itself to any party, the people said, asking not to be identified because details of the sale process are confidential.
Kroger, Fresh Market, Apollo and TPG declined to comment, while KKR did not respond to a request for comment.
Organic and specialty stores such as Fresh Market, once insulated from the broader supermarket competition, have struggled as rivals such as Kroger have diversified into similar offerings, said the report.
The news agency has reported, citing sources, that the Greensboro, N.C.-based company's founder and board chairman Ray Berry was considering taking the company private. Berry's son-in-law, Michael Barry, who previously served as Fresh Market's chief financial officer, was also considering rolling his stake in the deal, the sources said at the time.
Fresh Market has 183 stores, which it operates across 27 states. Its predominately southeastern locations include North Carolina, Florida and Georgia. Its Mid-Atlantic and Midwest locations include Connecticut, New York, Kansas, Illinois and Oklahoma.
Last year, Fresh Market hired Rick Anicetti as chief executive to help battle low margins and declining same-store sales. He had previously served for eight years as President and CEO of Food Lion's grocery stores.
Cincinnati-based Kroger has approximately 2,775 supermarkets and multi-department stores in 35 states and the District of Columbia under two-dozen local banner names including Kroger, City Market, Dillons, Food 4 Less, Fred Meyer, Fry's, Harris Teeter, Jay C, King Soopers, Mariano's, Pick 'n Save, QFC, Ralphs and Smith's. The company also operates 786 convenience stores, 1,360 supermarket fuel centers and more.
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