Amazon announced today that they have entered into a definitive merger agreement under which Amazon will acquire Whole Foods Market for $42 per share in an all-cash transaction valued at approximately $13.7Bn, including Whole Foods Market’s net debt.
Completion of the transaction is subject to approval by Whole Foods Market’s shareholders, regulatory approvals and other customary closing conditions. The parties expect to close the transaction during the second half of 2017.
Whole Foods Market will continue to operate stores under the Whole Foods Market brand and source from trusted vendors and partners around the world. John Mackey will remain as CEO of Whole Foods Market and Whole Foods Market’s headquarters will stay in Austin, Texas.
Leading position in US organic grocery and 2nd foray into brick and mortar retail
Established in 1978 in Austin, Texas, Whole Foods Market is a leading natural and organic foods supermarket, the first US national “Certified Organic” grocer, and positioned as America’s Healthiest Grocery Store.
Leaving aside that this operation means a step forfard in Amazon’s grocery business growth, the fact is that the online marketplace turns brick & mortar as well.
Shopping at Amazon Go. © Amazon Inc.
In fiscal year 2016, Whole Foods Market declared sales at around $16Bn and has more than 460 stores in the United States, Canada, and the United Kingdom. Whole Foods Market employs approximately 87,000 team members and has been ranked for 20 consecutive years as one of the “100 Best Companies to Work For” in America by Fortune magazine.
Whole Foods Market ranked #28 and Amazon ranked #2 on Fortune’s 2017 list of World’s Most Admired Companies.
“Millions of people love Whole Foods Market because they offer the best natural and organic foods, and they make it fun to eat healthy,” said Jeff Bezos, Amazon founder and CEO. “Whole Foods Market has been satisfying, delighting and nourishing customers for nearly four decades – they’re doing an amazing job and we want that to continue.”
“This partnership presents an opportunity to maximize value for Whole Foods Market’s shareholders, while at the same time extending our mission and bringing the highest quality, experience, convenience and innovation to our customers,” said John Mackey, Whole Foods Marketco-founder and CEO.
Image over the headline.- Whole Foods Market West Palm Beach store. © Whole Foods Market.
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