Apollo Global Management is exploring the sale of its Hispanic grocery platform, Heritage Grocers Group, in a deal that could value the business at around $1.5bn, according to a report by Reuters citing unnamed sources familiar with the matter.
The private equity giant has hired UBS to run the process as it considers strategic options for one of its largest US retail investments.
Heritage, which owns El Rancho Supermercado, Cardenas Markets and Tony’s Fresh Market, operates roughly 115 stores across Illinois, Texas, Kansas, California, Nevada, and Arizona. The company generates about $2bn in annual revenue and $150m in EBITDA, the sources said.
Apollo built Heritage through a series of acquisitions — combining Tony’s and Cardenas in 2022 after acquiring the latter from KKR, before adding El Rancho in 2023. The buyout firm has a long history of investing in the grocery sector, with past holdings including The Fresh Market, Smart & Final, and Albertsons.
The potential sale comes as Heritage’s performance has softened, with credit downgrades earlier this year reflecting pressure from weaker consumer spending and heightened immigration-related anxieties affecting key Hispanic shopping communities. Tariff uncertainty has further weighed on sentiment.
If successful, a Heritage sale would mark one of the largest grocery exits of the year, highlighting continued private equity activity across resilient consumer segments despite uneven spending trends.
