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Whole Foods lines up financing, completes Wild Oats deal

Whole Foods lines up financing, completes Wild Oats deal

Whole Foods Market Inc. said Tuesday it has lined up financing to complete its $565 million (euro413.5 million) purchase of rival Wild Oats Markets Inc., ending a 6-month battle against federal regulators who tried to block the deal on antitrust grounds.
The company said it took out a 5-year, $700 million (euro512 million) loan to fund the deal, which also includes the assumption of $137 million (euro100 million) in Wild Oats debt.
"While closing this merger has taken longer than we anticipated, we are very excited to now begin the integration process," said John Mackey, Whole Foods' chairman and chief executive. He said the deal "will result in a company that is much stronger and better positioned for the future."
Whole Foods said it has bought 84.1 percent of Wild Oats shares that were tendered at $18.50 apiece by a deadline late Monday. It will buy another 12.7 percent of Wild Oats shares that are subject to guaranteed delivery over the next three days, and acquire the rest under merger procedures of Delaware law.
Whole Foods shares fell 99 cents to $44.76 Tuesday, and Wild Oats shares rose 2 cents to $18.50.


Updated : 2021-05-08 16:47 GMT+08:00