The all-cash transaction for the specialty supermarket chain is valued at around $13.7 billion and expected to close during the second half of 2017, the companies said in a statement Friday.
Seattle-based e-commerce giant Amazon entered into a definitive merger agreement to acquire Whole Foods Market for $42 per share in an all-cash transaction valued at around $13.7 billion, the companies said Friday.
The transaction is expected to close during the second half of 2017, but is subject to approval by Whole Foods Market’s shareholders, regulatory approvals, and other customary closing conditions.
Whole Foods Market’s headquarters will remain in Austin, Texas, and Jon Mackey will continue as chief executive officer of the specialty supermarket chain. In addition, Whole Foods Market will continue to operate stores under the Whole Foods Market brand.
Overall, this is the largest deal ever for Amazon, outpacing its $970 million acquisition of video-game service Twitch Interactive in 2014 and its $850 million acquisition of online shoe store Zappos in 2009, according to multiple media sources.
Although Amazon has also been viewed as a cost savings type of retailer, while Whole Foods is high end, from a vantage point of acquiring a company, Whole foods is much more aligned with the Amazon brand compared to the other players out there, Guy Courtin, vice president of industry and solutions at Infor Retail told American Shipper. Amazon’s acquisition of Whole Foods fits its brand desire of having a well-respected, high end brand, he said.
Amazon has also made a strong push into the grocery space in the past year, and is worried about Walmart making a push into the e-commerce space, so the company is trying to shore up things on the grocery side, Courtin explained. The Whole Foods acquisition will give Amazon 450 more points of distribution, he said.
Rumor has it that Amazon will open up 1,000 stores over the next few years, and not just for groceries, Courtin said.
Amazon to buy Whole Foods Market
