Amazon paid a whopping $13.7 billion for Whole Foods Market in 2017. This deal was finalized on August 28th of that year.
The acquisition was a surprise to many in the industry, given Amazon's relatively small presence in the brick-and-mortar grocery market at the time.
The purchase price translates to approximately $42 per share of Whole Foods stock, which was a 27% premium over the company's stock price before the deal was announced.
A different take: Venture X Dallas - Braniff Centre
Amazon Acquires Whole Foods
Amazon paid $13.7 billion for Whole Foods.
The deal is a massive one, with Amazon agreeing to pay $42 a share in cash for Whole Foods, which is a 27 percent premium to the stock prices at Thursday's close.
Whole Foods has been struggling in the past year, with a three percent drop in foot traffic according to Barclays analysts.
The retailer has more than 465 stores and has seen its stock lose a fifth of its value in the last three years.
Additional reading: Foods Sell Liquor
John Mackey, Whole Foods' CEO, will stay on as leader of the company, and all locations will continue to operate under the Whole Foods name.
The acquisition is Amazon's largest to date and gives the company a sprawling brick-and-mortar presence and access to well-heeled consumers.
Amazon's billionaire founder and CEO, Jeff Bezos, said in a statement that Whole Foods has been "satisfying, delighting and nourishing customers for nearly four decades – they're doing an amazing job and we want that to continue."
The deal is evidence of Amazon's financial wherewithal and is easily its largest acquisition to date.
Shares of Amazon rose 3% on Friday morning, while shares of Whole Foods surged 27%.
A unique perspective: Whole Foods Market Stock Quote
Acquisition Price
Amazon paid $13.7 billion for Whole Foods.
The acquisition price is a staggering $13.7 billion, which is a clear indication of Amazon's commitment to expanding its presence in the grocery business.
Amazon would pay $42 per share in cash for the company.
This represents a 27% premium to Thursday's closing price, which is a significant investment in the brand value of Whole Foods.
The acquisition price is Amazon's largest to date, showcasing its financial wherewithal in the market.
See what others are reading: 5 Billion Yen
Frequently Asked Questions
Who was the owner of Whole Foods before Amazon?
John Powell Mackey was the co-founder and CEO of Whole Foods Market from its inception in 1980 until 2022. He led the company for over four decades before its acquisition by Amazon.
Sources
- https://www.thekitchn.com/amazon-is-buying-whole-foods-for-13-7-billion-246879
- https://www.cnbc.com/2022/08/25/how-whole-foods-has-changed-in-the-five-years-since-amazon-took-over.html
- https://www.businessinsider.com/amazon-whole-foods
- https://www.forbes.com/sites/sharonedelson/2023/08/04/amazon-revamps-grocery-business-makes-biggest-changes-since-acquiring-whole-foods-in-2017/
- https://www.forbes.com/sites/laurengensler/2017/06/16/amazon-to-buy-whole-foods-for-13-7-billion/
Featured Images: pexels.com
