This will be an all cash deal valued at just under $14 Billion Dollars.
Amazon Announce dealt o Acquire Whole Foods Market (WFM) for Just shy of $14 Billion dollars.
Whole Foods started in 1980 in Austin, Texas. Today it has grown to 465 stores and has a current Market Cap of $10.5 Billion. Whole foods has a reputation as a supplier to a large group growing health conscious consumers that demand healthy, organic , wholesome food products.
Amazon & Whole Foods Press Release :
Whole Foods Market ranked #28 and Amazon ranked #2 on Fortune’s 2017 list of World’s Most Admired Companies
SEATTLE and AUSTIN, Texas, June 16, 2017 (GLOBE NEWSWIRE) — Amazon (NASDAQ:AMZN) and Whole Foods Market, Inc. (NASDAQ:WFM) today announced that they have entered into a definitive merger agreement under which Amazon will acquire Whole Foods Market for $42 per share in an all-cash transaction valued at approximately $13.7 billion, including Whole Foods Market’s net debt.
“Millions of people love Whole Foods Market because they offer the best natural and organic foods, and they make it fun to eat healthy,” said Jeff Bezos, Amazon founder and CEO. “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.”
“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,” said John Mackey, Whole Foods Market co-founder and CEO.
Whole Foods Market will continue to operate stores under the Whole Foods Market brand and source from trusted vendors and partners around the world. John Mackey will remain as CEO of Whole Foods Market and Whole Foods Market’s headquarters will stay in Austin, Texas.
Completion of the transaction is subject to approval by Whole Foods Market’s shareholders, regulatory approvals and other customary closing conditions. The parties expect to close the transaction during the second half of 2017.
This will be an all cash deal valued at just under $14 Billion Dollars. it will be interesting to watch how Amazon folds this store into its expanding “Prime Pantry”.
This acquisition fits in with “Lowe’s previously announced plan to expand upon its relationship with its Pro customer base. “
In a press release date May 18, 2017 Lowe’s Companies (LOW) has announced that it has reached an agreement to acquire Maintenance Supply Headquarters for $512 Million dollars.
Maintenance Supply Headquarters is a Huston, Texas based company that operates 13 distribution centers located in the western. southeastern and south central United States. It covers 29 geographical areas and has a catalog of more than 5,300 products and services which targets maintenance and restoration of multi-family dwellings.
Lowe’s Investor Relations
This acquisition fits in with Lowe’s previously announced plan to expand upon its relationship with its Pro customer base.
“There is no doubt that Verizon is over paying for the company”
Straight Path Communications (STRP) stock is plunging after the announcement that AT&T (T) is pulling out of the bidding war created by Verizon (VZ). The stock was down over 20% in pre-market trading. Verizon is also trading down this morning on the news,
There is no doubt that Verizon is over paying for the company, It’s $184 per share offer is almost double what AT&T had bid for it ($95.63 per share) and represents a premium of over 400%. In addition Straight Path ( Verizon) will have to pay a substantial break up fee to pull out of the deal. Valuable 5-G spectrum has been the catalyst for the move for StraightPath.
I expect AT&T shares to bounce up this morning on the news. I own shares of AT&T and Verizon, but I have to admit I believe AT&T is the smarter company at this point.
Your Thoughts or Comments are welcome!
Two Healthcare REITS, Sabra Health Care (SBRA) and Care Capital Properties Inc. (CCP) have agreed to merge into one combined company. A combined merger worth 7.4 Billion dollars. Sabra shareholders will own approximately 41% and Care Capital shareholders will own approximately 59% of the new company.
Care Capital (CCP) shareholders will receive 1.123 shares of Sabra stock for each share of Care Capital they currently own.
Expected completion of the merger will occur in the 3rd quarter of 2017.
For more information – Press Release
Related Article : Capital Care Properties Acquires Behavioral Health Facilities
Coach, Inc. (COH) has announced it is acquiring buying Kate Spade (KATE) for $2.4 Billion. Coach will pay $18.50 a share for Kate Spade & Company for a all cash transaction.
Coach was founded in 1941 and has 430 locations in the U.S. and 530 International locations.
Kate Spade has two primary brands, Kate Spade and Jack Spade and Adelington Design Group. It’s brands include Women’s, mens and childrens clothing and home decor.
For more information : Press Release
Bob Evans (BOBE) has sold its Bob Evans Restaurants
Bob Evans (BOBE) has sold its Bob Evans Restaurants to Golden Gate Capital for $565 Million. In addition it has acquired Pineland Farms Potato Company.
Bob Evans intends to focus entirely on its food business and intends to expand on its popular side dish offerings.
President and Chief Executive Officer Mike Townsley said, “We are pleased the sale of Bob Evans Restaurants and the acquisition of Pineland Farms Potato Company have been completed as anticipated. I, along with the rest of the Bob Evans team, look forward to executing on the expanded set of growth opportunities ahead. We expect to leverage our acquisition of Pineland Farms Potato Company and our superior on-shelf performance to generate continued side-dish sales growth, particularly in expansion markets and new retail channels such as club and convenience stores. We also expect to grow in the food service channel as we partner with restaurant chains to help them better manage their costs while providing high quality products for their guests. This strategy is expected to enable a virtuous cycle of cash flow growth to: reward shareholders; attract and retain top talent; and fund capital and marketing investments which we expect to drive both retail and food service sales growth.”
In addition to announcing the sale of its Restaurants and the acquisition of the Pineland Farms Potato Company, Bob Evans also announced that it was paying a “Special Dividend” of $7.50 per share to shareholders of record May 30, 2017 and was payable on June 16, 2017.
Camping World (CWH) has purchase select assets from Gander Mountain Company. The purchase includes 15.6 Million for inventory and over 22 million for Real Estate,IP Platforms etc.
“The structure of our deal provides much flexibility and will not only allow us to refine the inventory selection and select only those stores which are profitable or we believe have a clear path to profitability, but will also allow us to immediately offer our comprehensive portfolio of services, protection plans, products and resources to the existing Gander Mountain and Overton customer base and in stores in which we elect to operate,” notes Camping World CEO Marcus Lemonis.
Camping World is a recent IPO (2016) that was owned by Marcus Lemonis, star of the popular TV show, “The Profit”. It has a Market Cap of 2.6 Billion and operates as a REIT. Camping World also owns the popular “Good Sam Club”