Private equity firm buys 17% of whole foods

Nutraceuticals World, Dec, 2008

In a $425 million deal, 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). 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.