Ahold Delhaize, Centerbridge Partners acquire FreshDirect
Ahold Delhaize, alongside Centerbridge Partners, announced the acquisition of online grocer FreshDirect.
“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. With its unparalleled quality of fresh food, exceptional brand recognition, and dedicated people, it has generated remarkable customer loyalty,” said Frans Muller, Ahold Delhaize’s CEO. “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.”
A majority of the share, funded by cash on hand, will belong to Ahold Delhaize, while Centerbridge Partners will be a minority equity investor with a 20% stake, the companies 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,” said David McInerney, FreshDirect’s CEO. “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.”
FreshDirect will retain its brand name once the acquisition is complete, report to a seven-person board and continue to operate out of its New York City facility.
“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.”