Ahold Delhaize and Centerbridge Partners acquire FreshDirect

Ahold Delhaize and Centerbridge Partners acquire FreshDirect

Ahold Delhaize and Centerbridge Partners have entered into an agreement to acquire FreshDirect, an online grocer based in New York, USA. Ahold Delhaize will acquire the majority stake, while Centerbridge Partners will be a minority equity investor with a 20% share. FreshDirect will retain its brand name following the closing. The company will report to a seven-person board comprised of members of both Ahold Delhaize and Centerbridge, and will continue to operate independently from its New York facility. The purchase price was not disclosed. The transaction is expected to close in the first quarter of 2021. With Ahold Delhaize being one of the world’s largest food retail groups and a leader in both supermarkets and e-commerce, the deal reaffirms the company's commitment to omnichannel growth worldwide. 

 

Frans Muller, Ahold Delhaize’s Chief Executive Officer, said: “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 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.”

 

David McInerney, FreshDirect’s Chief Executive Officer, commented: “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 the ability to utilize cost-of-goods synergies will allow FreshDirect to achieve its full potential.”

 

Adam Burinescu, Senior Managing Director at Centerbridge, said: “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 fulfilment that can assist FreshDirect in reaching its next level of growth.”

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