Grocery chain considers buying startup for upwards of $500 million
Competition in the grocery sector continues to heat up as Kroger considers purchasing online wholesaler Boxed.
Boxed sells bulk products such as dish soap and chips to customers’ front door. Kroger’s consideration occurs as more shoppers order their products online. The New York-based company is expecting more offers within the next couple of weeks. Morgan Stanley is advising the start-up.
The potential deal, which arose as the New York-based start-up was seeking funding, likely values Boxed at between $325 million and $500 million.
Amazon’s $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 world’s largest online retailer.
