Apollo Funds to Acquire Cardenas Markets From KKR

Paul, Weiss is advising funds managed by Apollo affiliates in their acquisition of Cardenas Markets, a leading grocery retailer serving the Hispanic community, from investment funds affiliated with KKR, a leading global investment firm.

Upon completion of the transaction, Apollo funds will combine portfolio company Tony’s Fresh Market with Cardenas Markets to create a leading Hispanic- and ethnic-focused grocer. Both companies will continue to operate under their respective brands and local leadership, while benefitting from greater scale and complementary capabilities. The combined Cardenas-Tony’s footprint will span nearly 80 stores across the country with approximately $1.8 billion in combined revenues.

The transaction, announced on June 13, is expected to close in the third quarter of 2022, subject to customary closing conditions. Financial terms of the transaction were not disclosed.

The Paul, Weiss team includes, among others, corporate partners Ellen Ching, Brad Finkelstein and Matthew Goldstein; tax partner Brian Grieve and counsel Kevin Colan; litigation partner Roberto Gonzalez; real estate partner Peter Fisch; executive compensation partner Lawrence Witdorchic; and intellectual property partner Claudine Meredith-Goujon.