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The firm is working with investment bank UBS on the sale process, they said, requesting anonymity as the matter is private. Sign up here. The grocery chain generates around $150 million of earnings before interest, taxes, depreciation and amortization and over $2 billion of revenue, they said. Apollo and UBS declined to comment. Heritage Grocers did not respond to a request for comment. Heritage owns El Rancho Supermercado, Cardenas Markets and Tony's Fresh Market. In 2022, Apollo acquired Tony’s from its founding family and Cardenas from private equity firm KKR and combined the two. It then bought El Rancho in 2023. The company has around 115 stores in Illinois, Texas, Kansas, California, Nevada, and Arizona. The grocery chain’s performance has suffered this year from weak consumer spending. Ratings agencies downgraded its credit this spring due to persistently soft consumer spending trends, exacerbated by tariff uncertainty. Mass deportations in the Hispanic community and Immigration and Customs Enforcement raids have also caused Heritage's core Hispanic shoppers to be more careful about when, where and how they shop. Apollo has a long track record in grocery, with present and past investments including The Fresh Market, Sprouts Farmers Market, Smart & Final, and Albertsons. Reporting by Abigail Summerville in New York; edited by Dawn Kopecki and Nick Zieminski Our Standards: The Thomson Reuters Trust Principles., opens new tab Abigail is on the M&A team and writes about consumer and retail deals. She joined Reuters in 2022 from Debtwire where she covered leveraged finance and the primary debt market for three years. Previously, her work has appeared in the Wall Street Journal, CNBC and the Boston Business Journal. She majored in business journalism at Washington and Lee University.
