Philadelphia-headquartered, on-demand delivery platform goPuff today announced a $350 million deal to acquire off-premise beverage alcohol retailer BevMo.
The transaction is expected to close within the next 30 days, pending “customary closing conditions.” Bloomberg first reported talks of a deal earlier today.
“We’re proud to bring goPuff’s operations to California and look forward to investing in talent and real estate across the state,” goPuff co-founder and co-CEO Rafael Ilishayev said in a press release. “Partnering with BevMo quickly advances our strategic objectives of providing more customers in new geographies with a seamless solution for their instant needs. Through this acquisition, goPuff will operate coast-to-coast, solidifying our presence as a leading, national consumer business.”
BevMo, which was backed by private equity firm TowerBrook Capital Partners, operates 161 stores in California, Arizona and Washington, which goPuff said will give the company the infrastructure “to seamlessly integrate into its network of local micro-fulfillment centers, enabling it to reach customers across the West Coast in 30-minutes or less.”
In addition to beer wine and spirits, BevMo also sells specialty snacks, cigars and glassware and bar accessories. The company also offers shipping and home delivery.
GoPuff, the e-commerce platform that serves as an on-demand convenience store, works through a distribution network of 200 “micro-fulfillment centers” that serve customers in more than 500 U.S. cities, many of which are concentrated in the eastern half of the country. The company said the deal will accelerate its entry into the California market, while providing millions of consumers access to alcoholic beverages, as well as everyday products via BevMo’s neighborhood stores.
“BevMo has an extremely loyal customer base and a deep infrastructure across three states,” goPuff co-founder and co-CEO Yakir Gola said in the release. “Bringing its iconic brand, locations and employees together with goPuff’s tech-driven, vertically integrated operating model positions us for unparalleled opportunity. We’re thrilled to welcome BevMo employees to the goPuff team and look forward to building relationships with these new local communities.”
Evercore served as financial advisor to goPuff, while Cooley LLP acted as its legal advisor. J.P. Morgan Chase worked as financial advisor to BevMo, while Kirkland & Ellis LLP acted as its legal advisor.
Last month, goPuff announced the completion of a $380 million funding round that takes the company’s valuation to $3.9 billion. The company was founded in 2013.