Advertisement

Report: Albertson's in early talks to buy Sprouts Farmers Market

 
Employees last month stock the deli cases at the Sprouts Farmers Market in Carrollwood at 15110 Dale Mabry Highway, Tampa, in preparation for its opening. Albertsons Cos., the grocery-chain operator backed by Cerberus Capital Management, has held preliminary talks to merge with Sprouts, according to a Bloomberg news report. 
[CHERIE DIEZ   |   Times] 


FL, Tuesday, February 21, 2017. It's the first Sprouts Farmers Market to open in Tampa and will open to the public Wednesday, Feb. 23.
Employees last month stock the deli cases at the Sprouts Farmers Market in Carrollwood at 15110 Dale Mabry Highway, Tampa, in preparation for its opening. Albertsons Cos., the grocery-chain operator backed by Cerberus Capital Management, has held preliminary talks to merge with Sprouts, according to a Bloomberg news report. [CHERIE DIEZ | Times] FL, Tuesday, February 21, 2017. It's the first Sprouts Farmers Market to open in Tampa and will open to the public Wednesday, Feb. 23.
Published March 23, 2017

Albertsons Cos., the grocery-chain operator backed by Cerberus Capital Management, has held preliminary talks to merge with Sprouts Farmers Market Inc., according to a Bloomberg news report.

Bloomberg, citing people with knowledge of the matter, said the discussions took place in recent weeks and may not lead to a deal. The talks have involved a plan to take organic grocer Sprouts private and add it to Albertsons' portfolio, which includes eponymous grocery stores and the Safeway store brand, Bloomberg said.

Representatives for New York-based Cerberus and Phoenix-based Sprouts didn't respond to requests for comment. A representative for Albertsons declined to comment.

Grocery stores have been battered by food deflation over the last year, forcing them to compete more aggressively over prices.

Sprouts last month opened its first location in Tampa Bay: a 27,000-square-foot store, located at 15110 N. Dale Mabry Highway in Tampa.

Previous coverage: Tampa Bay's first Sprouts Farmers Market opens

The organic chain — perhaps best known for its sprawling produce section — plans to open stores in South Tampa and Palm Harbor later this year.

The company has also announced 11 new stores that will open across the country during the second quarter this year. Other sites include Sarasota, Colorado, California, Texas and Georgia. Each store will hire around 100 employees.

Sprouts could fetch about $26 a share in a deal, Jefferies Group analyst Christopher Mandeville wrote in a note to clients Monday, an 18 percent premium to its last closing price. A sale may attract multiple suitors and lead to a competitive bidding process that could potentially push valuation higher, he wrote.