Sprouts Farmers Market LLC, the grocery-store operator that’s owned by Apollo Global Management LLC, is considering an initial public offering, three people familiar with the matter said.
The Phoenix-based company may begin interviewing underwriters for an IPO soon, said one of the people, who asked not to be named because the discussions are private.
Sprouts, originally a family-owned chain, has expanded after Apollo combined the company with another business owned by the same family in a February 2011 buyout. Sprouts completed an acquisition of 35 Sunflower Farmers Market locations in May.
Apollo is exploring a Sprouts offering after the largest U.S. IPOs by private equity-backed companies have made money for investors. Apollo- and Texas Pacific Group Ltd.-backed Norwegian Cruise Line Holdings Ltd. surged 47 percent through yesterday since raising $514.1 million in an IPO last month; Starwood Capital Group LLC’s Tri Pointe Homes Inc. has gained almost 7 percent since a $267.6 million IPO, and Bain Capital Partners LLC-backed Bright Horizons Family Solutions Inc. has risen 25 percent since a $222.2 million initial offer.
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