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Whole Foods Market Inc. announced on Thursday it has signed a definitive agreement to acquire substantially all of the assets of Harry's Farmers Market Inc. for approximately $35 million in cash.
The assets to be purchased are all assets relating to the three perishable superstores, including but not limited to real estate, the Harry's Farmers Market name, distribution center, commissary kitchen, bakehouse, and office facilities. Six small format "Harry's in a Hurry" food stores are not included in the transaction. The transaction is expected to close in November. The Company expects the acquisition to be neutral to slightly accretive to the Company's earnings in fiscal year 2002 and to produce cumulatively positive EVA within five years.
Harry's Farmers Market owns and operates three perishables superstores in Atlanta, Georgia. The revenues of these stores, for the year ended January 31, 2001, was approximately $100 million.
"The most important and successful acquisitions that we have made, such as Bread & Circus, Mrs. Gooch's and Fresh Fields, have provided us with intellectual capital as well as given us a platform for expansion in key geographic areas," said John Mackey, Chairman and CEO of Whole Foods Market. "We believe the Harry's acquisition is potentially as significant, due to their knowledge and expertise in operating perishable superstores that we will be able to leverage across the Company, in addition to the regional support infrastructure that we will acquire in Atlanta."