Apollo’s Acquisition of Cardenas Markets

Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal counsel to the Apollo Funds, while Kirkland & Ellis advised Cardenas Markets and investment funds affiliated with KKR on the deal.

Cardenas Markets, a leading grocery retailer focused on serving the Hispanic community, announced its sale to Apollo (NYSE: APO). The transaction is subject to customary closing conditions and is expected to be completed by Q3 2022. Financial terms of the transaction were not disclosed.

Solomon Partners acted as lead financial advisor to Cardenas Markets and KKR. BMO Capital Markets also advised. Credit Suisse, Wells Fargo and Rabobank have provided committed debt financing for the transaction.

Founded in 1981, Cardenas is one of the largest Hispanic grocery chains in the country with a differentiated store concept providing high-quality, specialty groceries at affordable prices. The Company, led by CEO Doug Sanders, today operates 59 stores and sources products from over 500 vendors. The combined Cardenas-Tony’s footprint will span nearly 80 stores across the western and mid-west United States with approximately $1.8 billion in combined revenues. Sanders will serve as CEO of the combined company and Cardenas chain, while Frank Ingraffia will continue to serve as the CEO of the Tony’s chain.

Apollo is a high-growth, global alternative asset manager. In our asset management business, we seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade to private equity with a focus on three investing strategies: yield, hybrid, and equity. For more than three decades, our investing expertise across our fully integrated platform has served the financial return needs of our clients and provided businesses with innovative capital solutions for growth. 

KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds.

The Paul, Weiss team included corporate partners Ellen Ching (Picture), Paul Sandler, 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.

The Kirkland team was led by corporate partner Ravi Agarwal and associates Jimin He, Oliver Yee and Deborah Kotkin with assistance from partner Sean Rodgers, tax partners Benjamin Schreiner and Adam Kool, and debt finance partners Eric Wedel and Matthew Leist. 

Involved fees earner: Ravi Agarwal – Kirkland & Ellis; Jimin He – Kirkland & Ellis; Adam Kool – Kirkland & Ellis; Deborah Kotkin – Kirkland & Ellis; Matthew Leist – Kirkland & Ellis; Sean Rodgers – Kirkland & Ellis; Benjamin Schreiner – Kirkland & Ellis; Eric Wedel – Kirkland & Ellis; Oliver Yee – Kirkland & Ellis; Ellen Ching – Paul Weiss Rifkind Wharton & Garrison; Kevin Colan – Paul Weiss Rifkind Wharton & Garrison; Brad Finkelstein – Paul Weiss Rifkind Wharton & Garrison; Peter Fisch – Paul Weiss Rifkind Wharton & Garrison; Matthew Goldstein – Paul Weiss Rifkind Wharton & Garrison; Roberto Gonzalez – Paul Weiss Rifkind Wharton & Garrison; Brian Grieve – Paul Weiss Rifkind Wharton & Garrison; Claudine Meredith-Goujon – Paul Weiss Rifkind Wharton & Garrison; Paul Sandler – Paul Weiss Rifkind Wharton & Garrison; Lawrence Witdorchic – Paul Weiss Rifkind Wharton & Garrison;

Law Firms: Kirkland & Ellis; Paul Weiss Rifkind Wharton & Garrison;

Clients: Apollo Funds (Apollo Global Management); Cardenas Markets; KKR;