Whole Foods Market, Austin, TX, is selling a 17% stake in the company to a private investment firm, Green Equity Investors (an affiliate of Los Angeles, CA-based Leonard Green & Partners) for $425 million.
The news came as Whole Foods announced a large drop in fourth-quarter earnings amid decreased consumer spending associated with the economic crisis.
“We are pleased that Leonard Green & Partners, L.P., one of the most experienced and successful investors in the retail industry, has decided to make such a significant investment in Whole Foods Market. We view it as a strong vote of confidence in our business model and our long-term growth prospects, despite the current economic environment,” said John Mackey, chairman, CEO and co-founder of Whole Foods Market. “This investment, combined with our strong cash flow from operations, gives us the financial flexibility to manage through these difficult economic times while continuing to prudently invest in our long-term growth.”
In connection with the preferred stock investment, Jonathan Sokoloff and Jonathan Seiffer of Leonard Green & Partners, intend to join Whole Foods Market’s board of directors.
“Whole Foods Market is an exceptional company that has revolutionized how consumers shop for natural and organic products,” said Mr. Sokoloff, managing partner of Leonard Green & Partners. “We are pleased to make this investment and look forward to a partnership with the board and management team to drive long-term growth, profitability and value for all shareholders.”
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11-10-2008, 03:01 PM
Private Equity Firm Buys 17% of Whole Foods
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