Apollo Global Management (APO) Eyeing $1.5B on Heritage Grocers Group Divestment

Apollo Global Management (NYSE:APO) is one of billionaire Daniel Sundheim’s stock picks with huge upside potential. On October 22, reports emerged indicating Apollo Global Management (NYSE:APO) is in the process of divesting its Hispanic grocery chain Heritage Grocers Group. The sale is expected to fetch about $1.5 billion.

The divestment comes amid growing fears that immigration raids will weaken consumer demand among Latino communities across the US. Consequently, it has engaged investment bank UBS to maximize value from the sale.

Heritage Grocers Group generated $150 million in earnings before interest, taxes, depreciation, and amortization, with over $2 billion in revenue. However, in recent months, the chain’s performance has come under pressure due to weak consumer spending. Additionally, rating agencies have downgraded the company’s credit rating due to soft consumer spending.

Apollo Global Management (NYSE:APO) is a global asset manager and capital provider that offers investment solutions and retirement services. It invests in various public and private markets, including credit, equity, and real assets.

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Disclosure: None. This article is originally published at Insider Monkey.