By Lisa Kerner
Charlotte, N.C., Feb. 20 - Apollo Management LP entered into a definitive merger agreement for its affiliate to acquire Smart & Final Inc. for $22.00 per share in cash in a transaction valued at $813.9 million, including debt.
The board of directors of Smart & Final unanimously approved the transaction, which is expected to close in the second quarter of 2007, according to a company news release.
Apollo's affiliate also entered into a stock purchase agreement with Paris-based Casino Guichard-Perrachon, SA, which owns 55.0% of Smart & Final's common stock, to purchase the subsidiary of Groupe Casino which directly owns approximately 52.2% of Smart & Final's common stock. This transaction is conditional on the concurrent closing of the Smart & Final merger, the release stated.
"Apollo's exceptional history of successful retail investing shows that we can leverage their experience to improve our operational metrics and return on capital," Smart & Final president and chief executive officer Etienne Snollaerts said in the release.
"As our 23-year association with Groupe Casino concludes, I'd also like to acknowledge the tremendous support which they have offered to Smart & Final in developing our current business."
City of Commerce, Calif.-based Smart & Final operates 254 non-membership warehouse stores for food and foodservice supplies.
Apollo is a private investment partnership.
| Acquirer: | Apollo Management LP
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| Target: | Smart & Final Inc.
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| Transaction value: | $813.9 million
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| Payment per share: | $22.00
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| Announcement date: | Feb. 20
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| Expected closing: | Second quarter of 2007
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| Stock price for target: | NYSE: SMF: $19.06 on Feb. 16
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