NEW YORK (1010 WINS) -- Dutch supermarket conglomerate Ahold Delhaize on Wednesday announced they have entered a definitive agreement to acquire New York City-based online grocer FreshDirect.
According to a statement, Ahold Delhaize, who also owns the Stop and Shop supermarket chains, will acquire the majority share, funded by cash on hand, and Centerbridge Partners will be a minority equity investor with a 20 percent stake.
"FreshDirect is a leading local brand in the fast-growing online grocery sector in the New York City metro area, one of the most important ecommerce food markets in the United States," Frans Muller, Ahold Delhaize's Chief Executive Officer, said. "The deal allows us to reach additional customers in the New York trade area and therefore will add incremental sales to the business.
"It further enables us to address customers' growing preference for convenient ways to shop. Finally, we are excited to have Centerbridge alongside of us in this venture and believe our combined focus, expertise, and scale will help us maximize the success of FreshDirect going forward," Muller adds.
The transaction is expected to close in early 2021, following the satisfaction of customary closing conditions, including regulatory clearance.
The takeover will allow Ahold Delhaize to reach more customers and grow its digital business amid a surge in digital grocery orders amid the COVID-19 pandemic with its delivery time slots becoming completely booked in March.
"We are strong believers that the future of grocery retail involves getting customers the best quality food, exactly when they want it, with the best customer service," David McInerney, FreshDirect's Chief Executive Officer said. "We have built FreshDirect into a reliable and recognizable business to serve this purpose. This transaction marks an important milestone in the continued growth of FreshDirect.
