Sprouts files $300 million IPO

According to a Reuters news report, Phoenix-based  Sprouts Farmers Markets, Inc. financially backed by Apollo Global Management, LLC a private equity firm located in New York, filed last week to raise $300 million in its initial public offering of common shares. The application with the SEC did not divulge the number of shares that Sprouts is arranging to tender or the value of the terms.

The company sells natural and organic food focusing on health and wellness at affordable prices, including fresh produce and bulk foods, meat and seafood, vitamins, supplements and household items. It operates in over 157 stores within the United States, three of which are in the Tucson area.

In 2011 Sprouts was picked up by Apollo through its Smart & Final subsidiary, and was later merged with Henry’s Farmers Market and Sun Harvest. Like Henry’s, Sprouts also merged with another grocer Sunflower Farmers Market in 2012. Sprouts Farmers Market reported net revenue of  $19.5 million on its pro forma sales of $2 billion last Thursday.

According to the IPO filing with the Securities and Exchange Commission, Apollo currently owns 51.8 % of the business. It shows that Goldman Sachs and Credit Suisse will act as joint book runners for the IPO.

Sprouts is planning to list on Nasdaq under the ticker symbol “SFM” and intends to allocate the proceeds of its initial public offering for settlement of loans and other financial requirements of the corporation. No word yet on when the company will go public.