Wednesday, February 21, 2007

whole foods buys wild oats: $565 million

It is official!!! Whole Foods Market Inc. will pay $565 million for Wild Oats Markets Inc., a chain of 110 natural and organic food markets in the United States and Canada. When Wild Oats lost its chief executive, Whole Foods decided it was the right time for a merger and approached the company. After the announcement Wild Oats shares rose 17.5 percent and Whole Foods shares rose 5.2 percent. Whole Foods will assume the rival's debt, reported to be $106 million. Whole Foods earned quarterly profit of $53.8 million, or 38 cents per share, in the period ended Jan. 14, down from its profit of $58.3 million, or 40 cents per share, a year earlier. Wild Oats revenue increased 12 percent to $1.87 billion from $1.67 billion a year earlier. Who is next? Vitamin Cottage, Trader Joe's, Planet Organic, Central Market or EarthFare?

With this news, it is time for me to post my favorite video again, "Store Wars.

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