Apollo Plans $1.5B Sale of Heritage Grocers Amid US Latino Demand Drop

Apollo Global Management is exploring the sale of its Hispanic-focused grocery platform, Heritage Grocers Group, with the deal potentially valued at around $1.5 billion. Heritage Grocers operates over 115 stores under banners like Cardenas Markets, Tony's Fresh Market, and El Rancho Supermercado, spanning states including California, Nevada, Arizona, Texas, Kansas, and Illinois. The sale consideration follows declining consumer demand in Latino communities, driven in part by increased immigration enforcement and related fears, which have reduced foot traffic and impacted sales. Heritage has experienced credit rating downgrades due to softened consumer spending, tariff uncertainty, and deteriorating financial metrics, prompting Apollo to seek strategic options amid a challenging retail environment. The company generated over $2 billion in annual revenue and about $150 million in EBITDA, but shifting consumer habits and socio-political factors have notably affected performance. Apollo has engaged UBS to manage the sale process, reflecting broader caution among investors toward demographic and policy uncertainties affecting specialized consumer segments.