Kroger considers buying online wholesaler Boxed for up to $500 million - source

From Reuters - January 12, 2018

(Reuters) - Grocery chain Kroger Co (KR.N) has considered buying online wholesaler Boxed, according to a person familiar with the matter, as more shoppers place food orders online and as competition with Inc (AMZN.O) heats up.

The potential deal, which arose as the New York-based startup was seeking funding, likely values Boxed at between $325 million and $500 million, said the person, who spoke on condition of anonymity.

Amazons $13.7 billion acquisition of Whole Foods Market last year to crack the U.S. grocery market heightened a sense of urgency among rivals looking for ways to counter competition from the worlds largest online retailer.

Target Corp (TGT.N), for instance, said last month it agreed to buy same-day delivery platform Shipt Inc for $550 million.


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