Although it previously was looking to purchase natural food grocer Sprouts Farmers Market, Albertsons appears to have backed out of its pursuit, The New York Post has reported.
Initially, the Boise, Idaho-based company’s talks with Sprouts about a potential merger involved a plan to take the Phoenix-based retailer private and add it to the Albertsons family of stores. However, Sprouts is now trading at too high a multiple for a transaction to take place, the newspaper reported. Mostly because of reports that Sprouts was in talks with Albertsons two months ago, Sprouts’ shares spiked by 30 percent, giving it a $4.4 billion market cap.
“Sprouts is a willing seller, but a deal with any suitor in the near term now seems unlikely,” the newspaper noted, adding that Target also approached Sprouts, but then pulled out.
Albertsons also has looked into acquiring Sprouts rival Whole Foods Market in a potential $14 billion merger. However, sources have told the Post that the Austin, Texas-based natural food grocer has “not been a willing seller” despite a recent board shakeup and calls for a sale by major investors.