Amazon announced today they will acquire Whole Foods Market for $42 a share in an all-cash transaction valued at an impressive $13.7 billion. The Austin-based organic and natural foods grocery giant will continue to operate under the Whole Foods Market brand. Co-founder John Mackey will remain as CEO and the Whole Foods headquarters will stay in Austin, Texas.
“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,” says Jeff Bezos, Amazon founder and CEO.
Amidst declining foot traffic and store closures, Mackey stated that the acquisition was the best solution for the company. “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.”
Acquiring Whole Foods is only one aspect of Amazon’s expansion into the grocery market. Amazon Go, the online retail giant’s take on the future of grocery shopping, features no lines and no checkout: shoppers literally grab and go. They also opened their grocery delivery service, AmazonFresh, in 2007 and, most recently, expanded AmazonFresh pick-up locations in Seattle that allow consumers to order groceries online and pick up the order.