Phoenix -- Private equity firm Apollo Management will acquire majority ownership in Phoenix-based Sprouts Farmers Market. Apollo plans to combine Sprouts operations with another of its holdings, Henry's Farmers Market, based in Irvine, Calif. The combined company will operate under the Sprouts Farmers Market name.
Terms of the deal, expected to close in the second quarter of this year, were not disclosed. The combined grocers will have 98 stores and generate annual sales that exceed $1 billion.
"After the combination, Sprouts will be one of the largest growth-oriented specialty retailers in the United States with a focus on natural and organic products," said Andrew Jhawar, a senior partner with Apollo.
Henry's and Sprouts were both found by the family of San Diego businessman Henry Boney.