Amazon Acquires Whole Foods Market for $13.7 Billion USD in All-Cash Deal
Amazon announced today it will acquire the Whole Foods Market for approximately $13.7 billion in cash. The acquisition comes as the two companies agreed to enter a definitive merger agreement in which Amazon will acquire the supermarket chain for $42 per share in an all-cash transaction, and it will include Whole Foods’ 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,” Amazon CEO Jeff Bezos wrote in a statement. “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.”
Whole Foods iconic CEO John Mackey will remain at the helm of his company, per the stipulations of the deal, which comes as Amazon makes increasing inroads into the grocery store market.
“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 Mackey.
The acquisition will be Amazon’s largest since it acquired the video service platform and video gaming community Twitch in 2014 for $970 million.
The deal comes as Amazon makes increasing inroads into the grocery market. The company recently unveiled its “Prime Now,” service delivering goods, like groceries, within one to two hours of consumers making an order, along with its AmazonFresh grocery service.
The future, for those who can afford it, is apparently organic fair trade locally-sourced artisanal bespoke groceries delivered by drone.
Will we see AmazonFresh in Canada anytime soon? This may help pave the way, as Whole Foods so far has 13 locations in Canada.