Amazon Says It Will Buy Whole Foods For $13.7 Billion
“Amazon did not just buy Whole Foods grocery stores,” claims Dennis K. Berman of the Wall Street Journal. “It bought 431 upper-income, prime-location distribution nodes for everything it does.”
Amazon did not just buy Whole Foods grocery stores. It bought 431 upper-income, prime-location distribution nodes for everything it does.
— Dennis K. Berman (@dkberman) June 16, 2017
In an announcement made just moments ago, Amazon will acquire Whole Foods for $42 per share, all-cash, at a value of approximately $13.7 billion. Damn, Amazon must have really wanted a self-serve Mochi Bar and Produce Butchers in their portfolio of companies!
In 2016 alone, Whole Foods had sales of $16 billion across its more than 460 stores in the United States, Canada and the United Kingdom. The deal on the surface seems valuable for stakeholders in both companies. Whole Foods has major shareholders that were rumored to want a sale, and Amazon is doggedly going after the grocery business while ironically investing into brick and mortar facilities.
The buy marks Amazon’s largest acquisition to-date. Earlier this week rumors were swelling that Amazon had its sights on acquiring messaging technology company Slack, turns out it was Whole Foods that would be the first in the e-commerce giant’s mouth.
“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.”
In Amazon’s release, customers are assured that Whole Foods Market will continue operating under the same name and continue their business of sourcing trusted vendors and partners around the world.
