Amazon to Buy Whole Foods in $13.

7 Billion Bet on
Groceries
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摘要 (ENGLISH)
(Bloomberg)-Amazon.com Inc. will acquire Whole Foods Market Inc. for $13.7 billion, a bombshell of a deal that
catapults the e-commerce giant into the supermarket business with hundreds of stores across the U.S. Amazon
agreed to pay $42 a share in cash for the organic-food chain, including debt, a roughly 27 percent premium to the
stock price at Thursday's close. The transaction also may help Amazon sideline Instacart Inc., a startup that has
delivered grocery orders...

全文文献
(Bloomberg)-Amazon.com Inc. will acquire Whole Foods Market Inc. for $13.7 billion, a bombshell of a deal that
catapults the e-commerce giant into the supermarket business with hundreds of stores across the U.S.
Amazon agreed to pay $42 a share in cash for the organic-food chain, including debt, a roughly 27 percent premium
to the stock price at Thursday's close. John Mackey, Whole Foods' outspoken co-founder, will continue to run the
business -- providing a lifeline to the embattled executive after a fight with activist investor Jana Partners.
The deal sends a shockwave across both the online and brick-and-mortar industries, uniting two brands that weren't
seen as obvious partners. But Whole Foods came under pressure to find a buyer this year after Jana acquired a
more than 8 percent stake and began pushing for a buyout. Jana's move irked Mackey, who has referred to Whole
Foods as his "baby." By enlisting Amazon, he gets to keep his job as chief executive officer of the grocery chain.
Whole Foods shares jumped 27 percent to $41.99 as of 10 a.m. in New York, bringing them close to the transaction
price. Amazon shares gained 3.2 percent to $995.
Five-Minute Delivery?
For Amazon, the deal is more about getting a distribution network for groceries, said Michael Pachter, an analyst at
Wedbush Securities Inc. It has spent years trying to break into delivering groceries, but hasn't been as successful as
in other categories.
Amazon previously contemplated a takeover of Whole Foods last fall, but it didn't pursue a deal, a person with
knowledge of the situation has said. The e-commerce company revisited the idea after Jana stepped in.
"Amazon clearly wants to be in grocery, clearly believes a physical presence gives them an advantage," Pachter
said. "I assume the physical presence gives them the ability to distribute other products more locally. So theoretically
you could get 5-minute delivery."
The transaction also may help Amazon sideline Instacart Inc., a startup that has delivered grocery orders from
Whole Foods stores in more than 20 states and Washington, D.C.
Previous Deals
Amazon's biggest acquisition announced to date came in 2014, when it agreed to buy video-game service Twitch
Interactive Inc. for $970 million in cash, according to data compiled by Bloomberg. The Seattle-based company had
about $21.5 billion of cash and equivalents at the end of March, the data show.
"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 Chief Executive Officer Jeff Bezos said in a statement.
The takeover is slated to be completed in the second half of the year, with Whole Foods' headquarters remaining in
Austin, Texas.
Jana had called for Whole Foods to overhaul its operations and brought in retail and food experts to help foster a

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turnaround. In an interview with Texas Monthly that ran earlier this week, Mackey chafed at Jana's campaign.
He referred to Jana as "greedy bastards" who were only interested in profiting from a forced sale of Whole Foods.
"These people, they just want to sell Whole Foods Market and make hundreds of millions of dollars, and they have
to know that I'm going to resist that," Mackey said in the interview. "That's my baby. I'm going to protect my kid, and
they've got to knock Daddy out if they want to take it over."
To contact the reporters on this story: Nick Turner in New York at nturner7@bloomberg.net ;Selina Wang in New
York at swang533@bloomberg.net To contact the editors responsible for this story: Nick Turner at
nturner7@bloomberg.net Lisa Wolfson
COPYRIGHT
(c) 2017 Bloomberg L.P
Credit: Bloomberg

索引

主题: Tender offers; Supermarkets; Acquisitions &mergers

业务索引编制术语: 主题: Tender offers Supermarkets Acquisitions &mergers; 企业: Whole Foods Market
Inc Amazon.com Inc; 行业: 44511 : Supermarkets and Other Grocery (except
Convenience) Stores

地点: New York; United States--US

民族: Bezos, Jeffrey

公司/组织: 名称: Amazon.com Inc; NAICS: 334310, 454110, 518210; 名称: Twitch Interactive Inc;
NAICS: 516210, 541511; 名称: Whole Foods Market Inc; NAICS: 445110; 名称:
Wedbush Securities; NAICS: 523150; 名称: Instacart Inc; NAICS: 454110, 492210

分类: 44511: Supermarkets and Other Grocery (except Convenience) Stores

标题: Amazon to Buy Whole Foods in $13.7 Billion Bet on Groceries

出版物名称: National Real Estate Investor; Atlanta

出版年份: 2017

出版日期: Jun 16, 2017

出版商: Informa

出版地: Atlanta

出版物国家/地区: United States, Atlanta

出版物主题: Real Estate

ISSN: 00279994

来源类型: 行业期刊

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 出版物语言: English

文档类型: News

ProQuest 文档 ID: 1910463604

文档 URL: http://eproxy.lib.hku.hk/login?url=https://www.proquest.com/trade-journals/amazon-
buy-whole-foods-13-7-billion-bet-on/docview/1910463604/se-2?accountid=14548

版权: Copyright Penton Media, Inc., Penton Business Media, Inc. Jun 16, 2017

最近更新: 2022-11-07

数据库: ABI/INFORM Global

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