Whole Foods Market to buy Harry's Farmers Market for 0.26 times revenue

Weekly Corporate Growth Report, Aug 20, 2001

Featured Transaction

The Deal: Whole Foods Market Inc. has agreed to purchase Harry's Farmers Market Inc. for $35 million. The acquisition is a move by Whole Foods to expand its reach in the Atlanta, Georgia area.

Discussion: Harry's Farmers Market operates food stores in the Atlanta area. The stores offer over 1,200 kinds of fruits and vegetables accounting for about 25 percent of sales. The stores also offer huge varieties of other perishable and nonperishable products. Founder Harry Blazer controls 83 percent of the voting power of the company, which he once used to oust every other board member when they tried to fire him as CEO.

Whole Foods Market is the number one natural foods chain in the United States. The firm operates about 117 stores in more than 20 states and Washington, DC. Whole Foods pioneered the supermarket concept in health foods retailing. Although most stores operate under the Whole Foods Market banner, others include Bread & Circus, Fresh Fields and Wellspring Grocery. Whole Foods is expanding its private labels and has moved into related businesses such as nutritional supplements. It also sells items online through a cobranding operation with Gaiam.com.