Ahold Delhaize and Centerbridge Partners to acquire FreshDirect

Ahold Delhaize and private equity firm Centerbridge Partners have agreed to acquire online grocer FreshDirect for an undisclosed sum.

New York-based FreshDirect is an online grocery delivery service which focuses on the delivery of fresh food and produce, which represents more than 60% of its sales.

Ahold Delhaize will acquire a majority stake in FreshDirect, while and Centerbridge Partners will be a minority equity investor, holding a 20% minority stake in the grocer.

Following the completion of the acquisition, FreshDirect will retain its brand name and continue to independently operate out of its fulfilment centre in the Bronx, New York.

Ahold Delhaize claims that the acquisition will significantly expand its ecommerce capabilities and allow it to reach new customers in the New York area.

The transaction is expected to close in early 2021.

Frans Muller, Ahold Delhaize’s CEO 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.”

David McInerney, FreshDirect’s CEO, added: “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 recognisable 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 ability to utilise cost-of-goods synergies, will allow FreshDirect to achieve its full potential.”