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Apollo Funds to Acquire Cardenas Markets

Upon completion of the acquisition, Apollo Funds’ portfolio company Tony’s Fresh Market to combine with Cardenas Markets to create a leading Hispanic and ethnic-focused grocer

NEW YORK– June 14, 2022 – Yesterday, Apollo (NYSE: APO) announced that funds managed by its affiliates (the “Apollo Funds”) have agreed to acquire Cardenas Markets (“Cardenas”), a leading grocery retailer focused on serving the Hispanic community, from investment funds affiliated with KKR, a leading global investment firm. Upon completion of the transaction, Apollo Funds will combine Tony’s Fresh Market, a Chicago-based portfolio company, with Cardenas Markets, which operates across California, Nevada and Arizona, to create a leading Hispanic- and ethnic-focused grocer. Both companies will continue to operate under their respective brands and local leadership, while benefitting from greater scale, complementary capabilities and an expanded operating footprint.

Founded in 1981, Cardenas is one of the largest Hispanic grocery chains in the country with a differentiated store concept providing high-quality, specialty groceries at affordable prices. The Company, led by CEO Doug Sanders, today operates 59 stores and sources products from over 500

vendors. The combined Cardenas-Tony’s footprint will span nearly 80 stores across the western and mid-west United States with approximately $1.8 billion in combined revenues. Sanders will serve as CEO of the combined company and Cardenas chain, while Frank Ingraffia will continue to serve as the CEO of the Tony’s chain.

“Since joining Cardenas, we have made great progress in growing and enhancing our operations with KKR’s support, and I am thrilled by the opportunity for our team to now partner with Frank and the Tony’s team, leveraging our collective strengths. Together, as two of the highest quality Hispanic and ethnic grocers, we can deliver even greater value to the communities we serve,” Doug Sanders, CEO of Cardenas said. “Apollo private equity has an extensive best-in-class track record of success in food retail, and I am thrilled to partner with Andy Jhawar and the Apollo team again in this exciting next chapter for Cardenas. I would also like to thank KKR, which been a tremendous strategic partner over the past six years, helping us grow and professionalize the business.”

Andrew Jhawar and Joanna Reiss, Apollo Private Equity Partners, said: “Cardenas has grown significantly over the last several years under Doug’s leadership and we are excited to accelerate its growth in combination with Tony’s in this next phase. We are excited to once again partner with Doug following

our highly successful investment in Sprouts Farmers Market which Doug led as CEO under Apollo funds’ ownership. Cardenas and Tony’s have robust positions in the ethnic grocer space, and together can leverage best practices across their complementary go-to-market strategies, merchandising, customer

loyalty programs and more. This transaction will combine the best of both retailers and provide greater opportunities and scale for the respective brands and teams as they continue to bring quality, affordable groceries to diverse communities.”

In 2016, KKR acquired Cardenas Markets from the Cardenas family with the thesis of transforming the business into a growth platform. Under KKR’s ownership, Cardenas doubled in size through a combination of organic growth and strategic acquisitions.

Vishal Patel, a Managing Director at KKR, said: “We are immensely appreciative of everything Doug and the management team have done to build a great company dedicated to bringing fresh and affordable groceries to the communities that it serves, consistent with the values that the Cardenas family instilled

in the business. We are confident that Apollo and Tony’s Fresh Market are the right partners for Cardenas as it enters its next chapter of growth.”

The transaction is subject to customary closing conditions and is expected to be completed by Q3 2022. Financial terms of the transaction were not disclosed.

Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal counsel to the Apollo Funds. Solomon Partners acted as lead financial advisor to Cardenas Markets and KKR. BMO Capital Markets also advised, and Kirkland & Ellis LLP served as legal advisor to Cardenas Markets and KKR. Credit Suisse, Wells Fargo and Rabobank have provided committed debt financing for the transaction.

About Apollo

Apollo is a high-growth, global alternative asset manager. In our asset management business, we seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade to private equity with a focus on three investing strategies: yield, hybrid, and equity. For more than three decades, our investing expertise across our fully integrated platform has served the financial return needs of our clients and provided businesses with innovative capital solutions for growth. Through Athene, our retirement services business, we specialize in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions. Our patient, creative, and knowledgeable approach to investing aligns our clients, businesses we invest in, our employees, and the communities we impact, to expand opportunity and achieve positive outcomes. As of March 31, 2022, Apollo had approximately $513 billion of assets under management. To learn more, please visit www.apollo.com.

About Cardenas Markets, LLC

Cardenas Markets is headquartered in Ontario, CA, and currently operates a total of 51 stores under the Cardenas Markets banner, 7 stores under the Los Altos Ranch Markets banner and 1 store under Cardenas Ranch Markets banner. Today, Cardenas Markets is one of the largest Hispanic grocery chains in the country with stores in California, Nevada, and Arizona. For more information visit cardenasmarkets.com.

About KKR

KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in

its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life, and reinsurance products under the management of Global Atlantic Financial

Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

Cardenas Markets Celebrates Back-to-School

Ontario, California (August 4, 2021) – Cardenas Markets, one of the largest Hispanic grocery chains in the country, is excited to help local students prepare for the new school year by providing them with free backpacks.

On Saturday, August 7, 2021, beginning at 8:00 a.m., all Cardenas Markets store locations will distribute backpacks to children (ages 5-13) and accompanied by an adult, while supplies last. “We are deeply rooted in the neighborhoods where we operate,” said Adam Salgado, Chief Marketing Officer for Cardenas Markets. “We are pleased to provide these backpacks to local children so they can begin the new school year prepared and ready to learn,” Salgado added.

El Gran Sorteo de Loteria® Tournament Winner!

Ontario, California (July 15, 2021) – Cardenas Markets is excited to announce that Victorville resident Araceli I. is the grand prize winner of the company’s inaugural El Gran Sorteo de Loteria® Scratcher Sweepstakes Tournament.

Cardenas Markets Chief Marketing Officer Adam Salgado presented Araceli I. with keys to her brand new 2021 Volkswagen Atlas Cross Sport at a car presentation ceremony held at the company’s Victorville location on July 15, 2021.   During the ceremony Araceli noted that winning the grand prize was a welcomed surprised as she and her family were in the market for a new vehicle.

“The company is thrilled to present Araceli with keys to her new vehicle,” Salgado said.  “The cornerstone of our business is tying culture and community together, and through this Sweepstakes program Cardenas Markets brought a piece of authentic Hispanic culture into our stores while providing a fun and engaging opportunities for our customers,” he added. 

The sweepstakes program took place from April 7, 2021 through June 1, 2021 in all 59 Cardenas Markets locations culminating with the Loteria Tournament. 

Cardenas Markets to Assist Families Affected by COVID-19

Cardenas Markets Foundation Established $250,000 Fund to Assist Families Affected by COVID – 19

Ontario, CA. (April 20, 2020) – Local food banks are experiencing an increase in demand and decrease in resources as families impacted by the Coronavirus turn to them for emergency assistance during these unforeseen times.  

As part of its ongoing giving efforts, the Cardenas Markets Foundation is donating funds totaling $60,000 to the following food banks in the areas Cardenas Markets serves:  

Alameda County Community Food Bank will receive a donation in the amount of $20,000.  

Food Bank for Monterey County will receive a donation in the amount of $10,000.  

Food Bank of Contra Costa & Solano will receive a donation in the amount of $10,000.  

Three Square Food Bank in Las Vegas will receive a donation in the amount of $20,000.  

“Cardenas Markets is dedicated to the wellbeing of the neighborhoods where we operate and our commitment to the local community extends past the confines of our stores,” said Marco Robles, Executive Director for Cardenas Markets Foundation.  “Food banks are working hard to help our communities in these most difficult times, and we are pleased to provide this donation to help them advance their efforts,” Robles added.

“We will be serving our community for the duration and we know that this will be a marathon, not a sprint. This contribution will have a direct, positive impact and we know that together, we can strengthen our community,” said Katherine Avila Food & Fund Drive Coordinator for Alameda County Community Food Bank

John Calendar Corporate Relations Manager for Food Bank of Contra Costa & Solano stated, “We are serving more of our neighbors than ever before, and we are deeply grateful for the support of the Cardenas Market Foundation.”

Additionally, Feeding America of Riverside I San Bernardino County, Second Harvest of the Silicon Valley, Inland Valley Hope Partners Pomona and St. Mary’s Food Bank in Arizona recently received gifts totaling $80,000 from the $250,000 fund the Cardenas Markets Foundation established in immediate response to the unprecedented need faced by communities due to the COVID-19 epidemic. 

 For more information about the Cardenas Markets Foundation, contact Marco Robles at mrobles@cmkts.com.

ABOUT CARDENAS MARKETS FOUNDATION: 
The Cardenas Markets Foundation is a stand-alone, 501(c)(3) non-profit corporation. Founded in 2005 and headquartered in Ontario, CA, the organization is notable for its charitable and community engagement efforts that positively impact the life of the communities it serves.  

ABOUT CARDENAS MARKETS, LLC:
Cardenas Markets is headquartered in Ontario, CA, and now operates a total of 51 stores under the Cardenas banner and 7 stores under the Los Altos Ranch Market banner. Today, Cardenas Markets is one of the largest Hispanic grocery chains in the country with stores in California, Nevada, and Arizona.

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Loteria Sweepstakes is Coming to Cardenas Markets!

$750,000 in Prizes Will Be Given Away

Ontario, California (April 5, 2021) – Cardenas Markets is excited to announce the launch of El Gran Sorteo de Loteria® scratcher sweepstakes!  The sweepstakes program will take place from April 7, 2021 through June 1, 2021 in all 59 Cardenas Markets locations. 

“Loteria or as some call it ‘Mexican bingo’ is a beloved game and Hispanic cultural symbol that connects people and celebrates our rich culture,” said Adam Salgado, Chief Marketing Officer for Cardenas Markets.  “The cornerstone of our business is tying culture and community together, and through this Sweepstakes program we continue to bring a piece of authentic Hispanic culture into our stores while providing a fun and engaging opportunity for our customers to potentially win a prize,” Salgado added.

Through the purchase of participating products customers will receive one (1) scratcher game piece for a chance to win either an Instant Prize or receive a unique game code for other opportunities to win*.   These opportunities may include a chance to play in our Loteria Tournament.  Winners of the Loteria Tournament are expected to win Groceries for a Year or a brand-new car.

For more information regarding the company’s Sweepstakes and official rules visit: https://cardenasmarkets.com/loteria.                                                                         

ABOUT CARDENAS MARKETS, LLC:
Cardenas Markets is headquartered in Ontario, CA, and now operates a total of 52 stores under the Cardenas banner and 7 stores under the Cardenas Ranch Market banner. Today, Cardenas Markets is one of the largest Hispanic grocery chains in the country with stores in California, Nevada, and Arizona.  For more information visit cardenasmarkets.com. 

*No purchase necessary; purchase does not increase your odds of winning. 

Prabash Coswatte Named Chief Administration Officer for Cardenas

Ontario, California (February 11, 2021) – Cardenas Markets is pleased to announce the promotion of Prabash Coswatte to the role of Chief Administration Officer.  

In this position Coswatte will continue to report directly to Doug Sanders, Chairman and CEO for Cardenas Markets, and will oversee the operations of the company’s Information Technology, Data Integrity, Scanning, Receiving, Maintenance, Construction, and Real Estate departments.

Coswatte joined Cardenas Markets as Chief Information Officer in 2019 bringing extensive project management and information technology experience gained throughout the course of his professional career.  Prior to joining Cardenas Markets, he served as Chief Information Officer for another Hispanic Grocer, Vice President – Enterprise Program Management for 99 Cents Only Stores, Sr. Project Manager for Cambridge Associates LLC, and Senior Consultant for Deloitte Consulting.

Additionally, Coswatte attended West Virginia University and holds a Master of Business Administration Degree from the University of Phoenix.  

ABOUT CARDENAS MARKETS, LLC:Cardenas Markets is headquartered in Ontario, CA, and now operates a total of 53 stores under the Cardenas banner and 7 stores under the Cardenas Ranch Markets banner. Today, Cardenas Markets is one of the largest Hispanic grocery chains in the country with stores in California, Nevada, and Arizona.  For more information visit cardenasmarkets.com. 

Always Fresh, Always Authentic!

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Leticia G. Espinoza Named Chief Legal Officer for Cardenas Markets

Ontario, California (January 13, 2021) – Cardenas Markets is pleased to announce the promotion of Leticia G. Espinoza to the role of Chief Legal Officer.  

In this position Espinoza will continue to report directly to Doug Sanders, Chairman and CEO for Cardenas Markets, and will continue to oversee the day-to-day operations of the company’s Legal, Risk Management, Quality Assurance, Payroll, Human Resources and Training departments.

“Leticia has demonstrated strong initiative, stellar leadership skills and has proven to be an invaluable legal resource,” Sanders stated.  “She also possesses strong business acumen which enables our company to align, achieve and advance our business priorities in compliance with government and regulatory guidelines,” Sanders added.

Espinoza joined Cardenas Markets as General Counsel and Corporate Secretary in 2019 and brings over 23 years of legal experience to her new role.  Prior to joining the Cardenas Markets team she served as direct in-house legal counsel for another Hispanic grocer.  Espinoza has served both publicly traded and privately held organizations and has extensive experience in the areas of Corporate law, Labor and Employment law, Legal Department Organization and Management, Human Resources, Risk Management, Compliance, Construction, Real Estate and Financial Services.

Additionally, Espinoza holds a Bachelor of Arts degree from the University of Southern California and a Juris Doctor degree from Cornell Law School.  She also serves on the Board of Directors for the Cardenas Markets Foundation.  

ABOUT CARDENAS MARKETS, LLC:Cardenas Markets is headquartered in Ontario, CA, and now operates a total of 53 stores under the Cardenas banner and 7 stores under the Cardenas Ranch Markets banner. Today, Cardenas Markets is one of the largest Hispanic grocery chains in the country with stores in California, Nevada, and Arizona.  For more information visit cardenasmarkets.com. 

Always Fresh, Always Authentic!

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Cardenas Markets Foundation Now Accepting Applications

Ontario, California (January 13, 2021) – The Cardenas Markets Foundation continues its commitment to supporting the communities it serves by providing $120,000 in scholarship funds to students in the areas where Cardenas Markets operates.

In sum, 60 scholarships totaling $2,000 each will be awarded for the 2021 – 2022 academic year.  Recipients will be selected based on their academic qualifications, financial need, leadership attributes and commitment to serving their local community. 

“The Cardenas Markets Foundation is committed to helping students advance their educational goals,” said Marco Robles, Executive Director for the Cardenas Markets Foundation.  “We understand that educational costs continue to increase, and we are pleased to help defray some of these costs for our future leaders,” Robles added.

Students can learn more and apply by visiting https://cardenasmarkets.com/scholarships


CARDENAS MARKETS FOUNDATION: 
The Cardenas Markets Foundation is a stand-alone, 501(c)(3) non-profit corporation. Founded in 2005 and headquartered in Ontario, CA, the organization is notable for its charitable and community engagement efforts that positively impact the life of the communities it serves.  

ABOUT CARDENAS MARKETS, LLC:
Cardenas Markets is headquartered in Ontario, CA, and now operates a total of 52 stores under the Cardenas banner and 7 stores under the Los Altos Ranch Market banner. Today, Cardenas Markets is one of the largest Hispanic grocery chains in the country with stores in California, Nevada, and Arizona.  For more information visit cardenasmarkets.com. 

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Cardenas Markets Partners with Instacart

Ontario, California (December 17, 2020) – Cardenas Markets is pleased to announce it has partnered with Instacart to provide its customers a convenient new way to shop for its wide variety of fresh and authentic offerings from the convenience of home.

“Cardenas Markets realizes the needs of our customers and communities are rapidly shifting,” said Adam Salgado, Chief Marketing Officer for Cardenas Markets. “We are committed to adapting with our customers and our partnership with Instacart allows us to further meet their essential food needs by providing convenient shopping solutions alongside excellent customer service,” Salgado continued.

“We know that families across California are looking for safe and reliable shopping options this season from the retailers they know and love. We’re proud to partner with Cardenas Markets to bring their incredible selection of fresh foods to customers in as fast as an hour,” said Andrew Nodes, Vice President of Retail at Instacart. “We’re dedicated to supporting beloved grocers like Cardenas Markets to ensure that they can connect with and serve their customers online now and into the future.”  

Cardenas Markets customers can access Instacart home delivery service by visiting www.instacart.com/cardenas-marketplace. Instacart delivery starts at $3.99 for same-day orders over $35. With an Instacart Express membership, customers receive unlimited free deliveries on all orders over $35.

Instacart’s delivery service for Cardenas Markets will be available in Las Vegas, Nevada as well as the following communities in California:  Calexico, Cathedral City, Coachella, Colton, Corona, East Palo Alto, El Centro, Fontana, Gilroy, Hayward, Hesperia, Indio, Lake Elsinore, Merced, Modesto, Montclair

Moreno Valley, Murrieta, Oakland, Ontario, Perris, Pittsburg, Pomona, Rialto, Riverside, Salinas

San Bernardino, San Jacinto, San Jose, San Rafael, Vallejo, Victorville, Watsonville and Whittier.

ABOUT INSTACART:Instacart is the leading online grocery platform in North America. Instacart shoppers offer same-day delivery and pickup services to bring fresh groceries and everyday essentials to busy people and families across the U.S. and Canada. Instacart has partnered with more than 500 beloved national, regional and local retailers, including unique brand names, to deliver from nearly 40,000 stores across more than 5,500 cities in North America. Instacart’s delivery service is available to 85% of U.S. households and 70% of Canadian households. The company’s cutting-edge enterprise technology also powers the ecommerce platforms of some of the world’s biggest retail players, supporting their white-label websites, applications and delivery solutions. Instacart offers an Instacart Express membership for unlimited free delivery on orders over $35. For more information, visit www.instacart.com. For anyone interested in becoming an Instacart shopper, visit https://shoppers.instacart.com/.

ABOUT CARDENAS MARKETS, LLC:Cardenas Markets is headquartered in Ontario, CA, and now operates a total of 53 stores under the Cardenas banner and 7 stores under the Cardenas Ranch Markets banner. Today, Cardenas Markets is one of the largest Hispanic grocery chains in the country with stores in California, Nevada, and Arizona.  For more information visit cardenasmarkets.com. 

Always Fresh, Always Authentic!

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