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Tech, Food, Business

Amazon to buy Whole Foods in $13.7 billion deal

Tech, Food, Business

Amazon to buy Whole Foods in $13.7 billion deal

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Daily Hive Staff Jun 16, 2017 6:39 am 7,870

Amazon is taking over Whole Foods Market in a blockbuster deal announced this morning.

In a release, the details behind the deal include Amazon acquiring Whole Foods Market for $42 per share in an all-cash transaction valued at approximately $13.7 billion, including Whole Foods Market’s net debt.

“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 Market co-founder and CEO.

In 2016, Whole Foods had sales of approximately $16 billion while maintaining more than 460 stores in the United States, Canada, and the United Kingdom.

Whole Foods Market will continue to operate stores under the Whole Foods Market brand.

The deal is set to close in the second half of 2017 but is still subject to approval by Whole Foods Market’s shareholders, regulatory approvals and other customary closing conditions.

According to Market Watch, shares of Amazon are up 34.4% over the past year while Whole Foods shares are up 7.3%. Recent rumours also suggest Amazon is considering a takeover of Vancouver company Slack to “bolster its enterprise services,” according to Bloomberg Technology.

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Daily Hive Staff
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