Online retail giant Amazon is acquiring Whole Foods in a deal valued at about $14 billion, the company announced Friday.
The deal shows Amazon's interest in moving into the business of operating traditional brick-and-mortar stores, even as many retailers that have been crippled by Amazon's growth have announced a series of store closings.
The deal is expected to be completed in the second half of 2017.
"Whole Foods Market has been satisfying, delighting and nourishing customers for almost four decades", said Jeff Bezos, Amazon founder and CEO, adding, "they're doing an awesome job and we want that to continue". "They're doing an fantastic job and we want that to continue".
Whole Foods will keep its brand and John Mackey, its current CEO, will remain in place at the company's Austin headquarters.
Grocery giant Kroger said Thursday that its profits for the year would be lower than Wall Street expected, sending its stock plunging almost 20%.
TheFinancial Times said the deal significantly ramps up Amazon's bid to disrupt the United States grocery industry, where its presence has been growing over the last few years.
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It's hard to see why Amazon wouldn't do this eventually, but Whole Foods employees can rest safe for now.
Founded in 1978 in Austin, Texas, Whole Foods Market is the leading natural and organic foods supermarket, the first national "Certified Organic" grocer, and uniquely positioned as America's Healthiest Grocery Store™.
Whole Foods had been feeling the pinch not just from activist investors like Jana partners, but also declining quarter-over-quarter same-store sales.
Whole Foods released its most recent earnings report in May.
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"It's a quick opportunity to become a real player and start doing their favorite thing, which is clicking on Walmart's heels", Wank added. The Motley Fool owns shares of and recommends Amazon and Whole Foods Market.
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