Few Sprouts in Albertsons’ merger hunt

Albertsons’ quest for a takeover target is not going so well, The Post has learned.

Cerberus Capital-controlled Albertsons, America’s second-largest grocery chain, had approached Sprouts Farmers Market months ago, but Sprouts is now trading at too high a multiple for a transaction to happen, two sources close to the situation said.

Largely due to reports in March that it was in talks with Albertsons, Sprouts saw its shares spike 30 percent, giving it a $3.3 billion market cap.

Albertsons also sniffed around Whole Foods Market in what could be a $14 billion merger, but Whole Foods has not been a willing seller, one of the sources said.

Sprouts is a willing seller, but a deal with any suitor in the near term now seems unlikely, two sources said.

Target also approached Sprouts last year but then pulled away, sources said.

Meanwhile, shareholder activist Jana Partners is pressuring Whole Foods, which could ultimately prompt a sales process.

Whole Foods shares have also risen since an April report that Albertsons has taken an interest in buying the chain. As a result, some activists, feeling the shares are too pricey, have stayed away, one source said.

Without more activist hedge funds wading into Whole Foods shares, Jana, with a 9 percent stake in the Austin, Texas, company, may have a hard time forcing a sale, an activist investor said.

Cerberus bought Albertsons in 2006, and since has acquired Safeway for $9 billion.

Private equity firms typically look to buy and sell companies in about five years. Albertsons on May 11 refiled its S-1 with the SEC, making it easier for it to hold an initial public offering.

Cerberus, Whole Foods and Sprouts declined comment.