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Apollo Global Management acquires Tony’s Fresh Market

Founding family to retain stake in Chicagoland grocery chain

Russell Redman

April 20, 2022

3 Min Read
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Tony's Fresh Market operates 19 specialty grocery stores in and around the Chicago area.Tony's Fresh Market

Chicago-area specialty grocer Tony’s Fresh Market has been acquired by affiliates of investment firm Apollo Global Management.

Financial terms of the transaction weren’t disclosed. New York-based Apollo said Wednesday that, going forward, Tony’s Fresh Market’s founding family will remain partners in the business, serving in management roles and as shareholders. Tony’s was founded in 1979 by Italian immigrants Tony Ingraffia and Domenico Gambino, who opened their first store at Fullerton and Central Park avenues in Chicago.

Currently, Itasca, Ill.-based Tony’s operates 19 supermarkets across the Chicago market and neighboring communities in Illinois. Apollo reported that several more stores are now in development.

“My family has been feeding our communities for generations and are incredibly excited to partner with Apollo to build upon that legacy of fresh and healthy food, at an affordable price and delivered with respect to the many cultures of our customers,” Tony’s Fresh Market CEO Frank Ingraffia, the son of co-founder Tony Ingraffia, said in a statement.

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Founded in 1979, Tony's is known for its large selection of fresh produce, prepared foods and multicultural offerings.

In announcing the acquisition, Apollo described Tony’s as a “unique specialty grocer” and noted that the chain holds a “differentiated position in the market” with its wide assortment of fresh produce, prepared foods and multicultural offerings. In addition, Tony’s plays a key role in the local economy and communities it serves, sourcing products from more than 400 vendors, Apollo added.

Related:The Fresh Market moves forward with IPO

“Tony’s is a market leader that’s built an incredible reputation in Chicago, known for its high-quality foods and differentiated offering that includes international food options and commitment to customer service,” according Apollo partner Andrew Jhawar. “Having spent more than 20 years leading Apollo’s private equity investments in grocery and retail, I firmly believe the business is poised for strong organic growth, and together we see additional opportunities to support Tony’s through go-to-market execution, customer loyalty programs, e-commerce and more. Tony, Frank and the broader team have built an incredible business, and we look forward to leveraging our extensive expertise to support their continued success.”

Jhawar told the Chicago Tribune that Tony Ingraffia will be a shareholder and board member, and that Tony and Frank Ingraffia and some other family members will have “a significant equity investment” in the company. The Tribune reported that Gambino is retiring but his family will remain involved in the business.

Related:Smart & Final to be acquired by Bodega Latina for $620 million

Apollo’s supermarket investments over the years have included Albertsons Cos., The Fresh Market, Sprouts Farmers Market and Smart & Final, among others.

“We are focused on tackling the persistent challenge of access to healthy and affordable food, particularly in underserved communities,” stated Apollo partner Joanna Reiss, who serves as the firm’s co-lead for impact investing. “With our investment in Tony’s, we are proud to support a high-performing company that is increasing access to quality, affordable groceries in a broad swath of neighborhoods, as well as donating to local food banks to fight hunger. We hope to further strengthen and scale Tony’s, and by doing so achieve strong financial performance alongside even greater impact.”

Frank Ingraffia told the Tribune that Tony’s has three new stores planned, including locations in Chicago, Joliet and Schaumburg, Ill.

For the acquisition, Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel for the Apollo fund affiliates, while Stout Capital, LLC acted as financial adviser and McDermott Will & Emery LLP as legal counsel for Tony’s Fresh Market.

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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