A press release states that Ahold Delhaize will acquire the majority share, funded by cash on hand, and Centerbridge Partners will be a minority equity investor with a 20% stake. Financial terms of the deal were not disclosed. The transaction is expected to close in the first quarter of 2021.
Adam Burinescu, Senior Managing Director at Centerbridge, said in the press release, “We are excited to partner with Ahold Delhaize, a leading player in global food retail and believe this is an outstanding combination. As a partner, we believe that Centerbridge brings deep experience in the interplay between logistics facilities and e-commerce fulfillment that can assist FreshDirect in reaching its next level of growth.”
FreshDirect will retain its brand name and continue to independently operate out of its NYC facility, although the press release notes that it will report to a seven-person board.
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David McInerney, FreshDirect’s Chief Executive Officer, said, “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. 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.”FreshDirect has more than 20 years of local market and customer experience, the press release explains. Fresh food makes up more than 60% of the company’s sales. Its e-commerce platform enables customer ordering from picking all the way to last mile delivery, and can provide same-day and rush delivery.
Frans Muller, Ahold Delhaize’s Chief Executive Officer, said in the press release, “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. With its unparalleled quality of fresh food, exceptional brand recognition, and dedicated people, it has generated remarkable customer loyalty. This acquisition further propels our omni-channel evolution. 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.”
