Stout has advised Tony’s Fresh Market (“Tony’s”), a leading Chicago-based specialty grocery retailer, on its sale to Apollo Global Management (“Apollo”) (NYSE: APO), a global alternative asset manager. The transaction closed on April 20, 2022. Stout served as exclusive sell-side financial advisor to Tony’s in connection with the transaction.

Tony’s operates 18 grocery stores across the Chicago metropolitan area, with several more store locations currently in development. Tony’s plays an important role in the local economy and community, providing affordable, high-quality food to thousands of families. The business has been family-owned and operated since its founding more than 40 years ago.

Apollo is a high-growth, global alternative asset manager. The firm seeks to provide its clients excess return at every point along the risk-reward spectrum, from investment grade to private equity, with a focus on three business strategies: yield, hybrid, and opportunistic. As of December 31, 2021, Apollo had approximately $498 billion assets under management.

Frank Ingraffia, the CEO of Tony’s and a member of the founding family, said “My family has been feeding our communities for generations and are incredibly excited to partner with Apollo to build upon that legacy of fresh and healthy food, at an affordable price and delivered with respect to the many cultures of our customers.”

“Tony’s is a market leader that’s built an incredible reputation in Chicago, known for its high-quality foods, differentiated offering that includes international food options and commitment to customer service,” said Apollo Partner Andrew Jhawar. “The business is poised for strong organic growth, and we see additional opportunities to support Tony’s through go-to-market execution, customer loyalty programs, e-commerce and more. Tony, Frank and the broader team have built an incredible business and we look forward to leveraging our extensive experience in grocery and retail to support their continued success.”

The founding family will partner with Apollo, both in management roles and as shareholders going forward. Following the close of the transaction, Frank Ingraffia will continue as CEO of Tony’s.

Nick Jachim, Managing Director at Stout, led the transaction. Jachim added, “We are thrilled with the outcome for both parties involved in this successful transaction and look forward to seeing a partnership that continues to provide access to healthy and affordable food, particularly in underserved communities.”

Stout’s Gian Ricco, Robert von Furth, Sidarth Balaji, Conrad Hahne, Justin Gerszonovicz, and Vinay Moorthy assisted in executing the transaction.

McDermott Will & Emery LLP acted as legal counsel to Tony’s Fresh Market. Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal counsel to Apollo.

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