Sprouts Farmers Market Announces Definitive Agreement To Merge With Sunflower Farmers Market

On March 9, 2012, CEO Shon Boney announced that Sprouts Farmers Market and Sunflower Farmers Market are planning to merge, under the majority ownership and sponsorship of Apollo Management, LP, one of the world's leading private equity firms.

Subject to regulatory approval, the combined company will have 142 stores and about 10,000 employees at the time the transaction closes, which is expected to be in mid-Spring, with several more stores slated to open in 2012 and beyond. That will make Sprouts one of the largest grocery retailers specializing in fresh and natural foods in the region, and will extend the company's footprint into Nevada, Utah, New Mexico and Oklahoma. For now, Sprouts and Sunflower remain competitors, but if the deal is approved we will eventually unite under the Sprouts Farmers Market name.

This is very good news for customers and for our employees. Among other advantages:
•It will bring an influx of interesting new products to your store.
•Prices may get even better, as our improved access to suppliers should allow us to find efficiencies in purchasing and distribution.
•There will be more stores, with more employment opportunities, and more of a tax base for the local economies.
•There will be improvements in operations, as we take the best practices of each company and merge them into one.

What Will Happen to the Stores?
Nothing will change for a while, because the transaction still has to be approved. Even after that, it will take many months of behind-the-scenes work before big changes start to occur. Eventually, the Sunflower stores will probably all change their name to Sprouts. In terms of products and service, we will take the best of both companies to create something that is greater than the sum of its parts.

Will All the Stores Remain Open?
We hope so, though no decisions have been made.

Will the Prices Change?
If anything, they are likely to get better. Both companies have always had a strong value proposition, and that is not going to change. Post-merger, the combined company will have even better access to suppliers, and we should be able to find some efficiencies in buying and distribution that will be passed on to our consumers.

Where Can Customers Get More Information?
We have set up a public website at www.1FarmersMarket.com.

Source: Sprouts Farmers Market