Online retail giant Amazon is making a major retail move by announcing it’s acquiring organic grocer Whole Foods Market for $42 per share in an all-cash transaction valued at approximately $13.7 billion.
Whole Foods Market in April reported its sixth consecutive quarter of declining sales. The supermarket chain focuses on organic foods without artificial preservatives, colors, flavors, sweeteners and hydrogenated fats. The deal, subject to customary closing conditions, should be completed during the second half of this year. The acquisition includes Whole Foods Market’s net debt as well.
Whole Foods Market stores and brand will live on and John Mackey will remain the company’s CEO. Whole Foods Market’s headquarters will stay in Austin, Texas.
Jeff Bezons, Amazon’s founder and chief executive, said:
Millions of people love Whole Foods Market because they offer the best natural and organic foods, and they make it fun to eat healthy. 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.