As the pandemic has led to a recent boom in online sales, e-tailers like Boxed are taking advantage of the lucrative changes. The online wholesaler has announced that it is on the lookout for new strategic growth options, ranging from a sale to a blank-check acquisition from a merger that values the company at $1 billion.
Boxed is often referred to by some of its customers as a Costco for millennials. The New York-based company offers products from fresh groceries to office supplies without membership fees, and also provides free delivery for orders over $49.
According to Reuters, the online retailer has hired investment bank Citigroup to advise on the sale, the sources said, requesting anonymity as the matter is private. The company has held discussions with potential buyers including so-called special-purpose acquisition companies (SPACs), the sources said, cautioning that it is possible no deal will ultimately materialize.
Both Boxed and Citi declined to comment.
Like many e-commerce businesses, it has benefited from a boom in online sales in the United States as consumers stay away from brick-and-mortar stores due to the COVID-19 pandemic. Boxed has seen a steady uptick in new customer signups since March, one of the sources said.
In the end, what will the wholesaler choose to do, and how will it continue to affect the changing online market? Continue reading Deli Market News for the answers as they make their way down the newswire.