Apollo Global Management is weighing the sale of Heritage Grocers Group, its Hispanic-focused U.S. supermarket platform, in a deal that could value the company at around $1.5bn, according to people familiar with the matter cited by Reuters.

The firm has hired UBS to advise on the process, which remains in its preliminary stages. Heritage operates more than 115 grocery stores across Illinois, Texas, Kansas, California, Nevada, and Arizona under banners including El Rancho Supermercado, Cardenas Markets, and Tony’s Fresh Market.

Heritage generates over $2bn in annual revenue and roughly $150m in EBITDA. However, the company’s performance has softened this year as weaker consumer spending and immigration-related concerns weigh on foot traffic in key Hispanic markets. The retailer’s credit rating was downgraded earlier this year amid slowing growth and tariff uncertainty.

Apollo built Heritage through a series of acquisitions beginning in 2022, when it bought Cardenas Markets from KKR and Tony’s Fresh Market from its founding family, later combining the two. It added El Rancho Supermercado to the platform in 2023.

The move comes as Apollo evaluates strategic options for its consumer and retail holdings amid a rebound in grocery M&A. Private equity interest in the sector remains high as investors seek resilient, cash-generative assets in a challenging economic environment.

Apollo has a long track record in grocery investments, including previous holdings in Sprouts Farmers Market, Smart & Final, The Fresh Market, and Albertsons.

Apollo and UBS declined to comment on the potential sale.

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