Arl - Havarti Market Leader - Branded and Unbranded - Partner and grow with us
200 years of tradition
Castello - Number one imported havarti - Authentic Danish Heritage
Veroni - Enjoy Aperitime - Fresh Arrival
Ahold Delhaize and Centerbridge Partners Announce the Acquisition of FreshDirect

Ahold Delhaize and Centerbridge Partners Announce the Acquisition of FreshDirect


NEW YORK CITY, NY
Thursday, November 19th, 2020

The retail landscape is about to change. Recently, Ahold Delhaize rocked the newswire as it announced it had entered into a definitive agreement to acquire online grocer FreshDirect. Ahold will acquire the majority share, funded by cash on hand, and Centerbridge Partners will be a minority equity investor with a 20 percent stake.

Frans Muller, Chief Executive Officer, Ahold Delhaize“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 e-commerce food markets in the United States,” Frans Muller, Ahold Delhaize’s Chief Executive Officer, said. “With its unparalleled quality of fresh food, exceptional brand recognition, and dedicated people, it has generated remarkable customer loyalty. This acquisition further propels our omnichannel 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.”

Financial terms of the deal weren’t disclosed in the press release, but it did explain FreshDirect will retain its brand name, report to a seven-person board, and continue to independently operate out of its facility in New York City after the deal closes. The transaction is expected to finalize in the first quarter of 2021.

David McInerney, Chief Executive Officer, FreshDirect“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. 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.”

Backed with more than 20 years of local market and customer experience, FreshDirect is known to focus on fresh food, which represents more than 60 percent of its sales. It differentiates itself by forming exclusive relationships with local farmers coupled with unique meal solution capabilities. The company’s efficient supply chain enables faster and more direct delivery of fresh food than most other conventional grocery services, providing a further enhanced freshness experience to customers.

Ahold Delhaize has teamed up with Centerbridge Partners to acquire online grocer FreshDirect

As noted in the press release, FreshDirect also brings with it a highly scalable and state-of-the-art fulfillment center, located in the Bronx, New York. Its e-commerce platform enables customer ordering, from picking through packing to last-mile delivery, including the ability to provide same-day and rush delivery.

Adam Burinescu, Senior Managing Director, Centerbridge Partners“We are excited to partner with Ahold Delhaize, a leading player in global food retail and believe this is an outstanding combination,” Adam Burinescu, Senior Managing Director at Centerbridge, said. “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.”

As the industry continues to evolve to the changing habits of consumers, what new partnerships, acquisitions, and developments can we expect next? Keep reading Deli Market News as we find out.

Ahold Delhaize
Topics: