Expanding its geographical coverage, on-demand delivery company goPuff has entered into a definitive agreement to acquire BevMo!, a California-based alcohol retailer that offers in-store purchase, delivery and shipment, the Philly company announced Friday.
goPuff has some presence on the West Coast in cities such as Seattle and Portland, but this acquisition shores up the company’s footprint there, with BevMo!’s 161 stores throughout California, Arizona and Washington. The definitive agreement is for $350 million, goPuff said.
“We’re proud to bring goPuff’s operations to California and look forward to investing in talent and real estate across the state,” said cofounder and co-CEO Rafael Ilishayev in a statement. “Partnering with BevMo! quickly advances our strategic objectives of providing more customers in new geographies with a seamless solution for their instant needs.”
The acquisition accelerates goPuff’s entry into California, and will provide customers in BevMo!’s network of neighborhood stores with the option of delivery of everyday items, like baby and pet products, cleaning supplies, food and alcohol, and local wares. The company has more than 200 micro-fulfillment centers that service customers in more than 500 U.S. cities. It recently shut down its main Philly warehouse in Callowhill for a new, unnamed hub, The Philadelphia Inquirer reported earlier this week.
This expansion to California is another moment of growth for the company after it closed a $380 million round of fundraising last month and a $750 million round last year. The October fundraise was to focus on geographic expansion like this, and it added new faces to its leadership team coming from the likes of Uber and Lowe’s.
BevMo! CEO Josiah Knutsen said the team looks forward to introducing goPuff to Californians to “enhance the experience for BevMo! customers and our communities at large.” Over time, goPuff plans to integrate its delivery solutions, tech and fulfillment center management systems with BevMo! to have the ability to deliver not only alcohol, but the everyday essentials, a goPuff spokesperson said.
“Joining goPuff, a company that has created a truly differentiated approach and defined the instant needs category, will allow us to better meet our consumers’ evolving needs, including delivering everyday essentials directly to their doorstep,” Knutsen said.
The transaction is anticipated to close within 30 days, subject to customary closing conditions, goPuff said.
— Rafael Ilishayev (@Rafaelilishayev) November 5, 2020
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