Private equity firm Green Equity Investors has acquired a 17% stake in Whole Foods Market for US$425m.
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The news came as Whole Foods Market released its full-year results yesterday (5 November), posting a drop in net income for the 52-week period to 30 September.
The Texas-based company recorded net income of $114.5m, down from $182.7m in the comparable period last year.
Operating income was also down for the period, dropping to $328.3m from $367.63 in fiscal 2007.
Despite this, the company posted an increase in full-year net sales to $7.93bn from $6.59bn in the previous year.
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By GlobalDataNet income for the 12-week fourth quarter dipped to $1.5m from $33.9m in the previous year on charges relating to idle Wild Oats properties, a tax charge, asset impairments and 13 lease terminations of Whole Foods stores in development.
Net sales increased 9% to $1.6bn.
“We are pleased that Leonard Green & Partners, one of the most experienced and successful investors in the retail industry, has decided to make such a significant investment in Whole Foods Market,” said John Mackey, chairman, chief executive officer, and co-founder of Whole Foods Market.
“We view it as a strong vote of confidence in our business model and our long-term growth prospects, despite the current economic environment. This investment, combined with our strong cash flow from operations, gives us the financial flexibility to manage through these difficult economic times while continuing to prudently invest in our long-term growth.”
