Amazon Is Buying Whole Foods
So how big of a deal is this?
Online retail juggernaut Amazon is set to acquire high-end grocery store Whole Foods for a deal worth approximately $13.7 billion, the company announced today. According to Bloomberg, the all-cash transaction will be the largest acquisition in Amazon's history, as the e-commerce company is in the middle of expanding its presence in the world of grocery shopping.
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The deal, which works out to $42 a share, will leave current CEO John Mackey in charge of Whole Foods; the store's current headquarters will also remain in Austin, so it doesn't look like you'll have to worry anytime soon about finding a new place to grab your kombucha and boxes of organic arugula.
"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," Mackey said in the announcement.
The deal is expected to close by the end of the year, and while there's no further details about what else is in store as a result of the acquisition, it's no secret Whole Foods has been struggling for quite a bit: It's been experiencing one of its longest periods of decline while trying to shed the notorious nickname, Whole Paycheck. Its relationship with its current investors, Jana Partners, who Mackey referred to in a recent interview with Texas Monthly as "greedy bastards," has also been far from perfect.