Ahold Delhaize to acquire FreshDirect
Ahold Delhaize, along with investment firm Centerbridge Partners, has agreed to purchase online grocer FreshDirect.
FreshDirect will retain its name and operate independently from its facility in New York City, according to a news release. The companies expect the deal to be finalized in the first quarter of 2021.
Ahold Delhaize, which operates U.S. grocery banners including Food Lion, Hannaford, The Giant Co., Stop & Shop and Giant Food, will be the majority shareholder for FreshDirect, while Centerbridge Partners will have a 20% share in the company, according to the release.
Frans Muller, CEO of Ahold Delhaize, touted FreshDirect’s brand recognition and loyalty and noted the importance of the New York City metro as an e-commerce market.
“This acquisition further propels our omnichannel evolution,” Muller said in the release. “It is a great addition and fit for our portfolio of leading local brands. 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 said.
Fresh food accounts for more than 60% of FreshDirect sales, and the company’s relationships with local suppliers and its meal solutions are among its defining characteristics, according to the release. Its fulfillment center and e-commerce platform are also considered valuable assets.
“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, CEO of FreshDirect, said in the release. “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. I believe Ahold Delhaize’s global scale, focus on strong, leading local brands, and ability to utilize cost-of-goods synergies will allow FreshDirect to achieve its full potential.”
Financial details of the deal were not disclosed.
