Online delivery platform Gopuff breaks new ground by purchasing retailer BevMo!
An online delivery startup is purchasing a 161-store specialty beverage retailer.
Philadelphia-based Gopuff is purchasing Concord, Calif.-based retailer BevMo!, which operates 161 stores throughout California, Arizona, and Washington, for $350 million. The acquisition will significantly accelerate Gopuff’s entry into California, with BevMo!’s entire store footprint providing extensive infrastructure for goPuff to seamlessly integrate into its network of local micro-fulfillment centers.
As a result of the acquisition, Gopuff intends to be able to reach customers across the West Coast in 30-minutes or less for delivery of alcoholic beverages, as well as everyday items across its product inventory. Meanwhile, BevMo! customers will gain access to on-demand delivery of a wide range of household items.
Gopuff, which operates more than 200 micro-fulfillment centers servicing over 500 U.S. cities, provides speedy delivery (in as little as minutes) of immediate everyday needs, including cleaning and home products, over-the-counter medications, food, beverages and, in some markets, alcohol. It charges a flat $1.95 delivery fee and is open 24/7 in many markets and late-night everywhere else it operates.
Gopuff is entering uncharted territory as an on-demand delivery platform purchasing a brick-and-mortar retail chain to bolster its delivery infrastructure. Amazon has expanded its physical delivery capabilities by purchasing Whole Foods and opening several proprietary retail banners, but operates as a full-scale e-commerce retailer. If this venture proves successful, other on-demand delivery players like Instacart, Grubhub, and DoorDash may follow.
“We’re proud to bring Gopuff’s operations to California and look forward to investing in talent and real estate across the state,” said goPuff co-founder and co-CEO Rafael Ilishayev. “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.”
“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,” said Josiah Knutsen, CEO of BevMo!. “We look forward to helping introduce Gopuff to California and working together to further enhance the experience for BevMo! customers and our communities at large.”
The transaction is anticipated to close within 30 days, subject to customary closing conditions. BevMo was previously owned by private equity firm Towerbrook Capital Partners.
Evercore acted as financial advisor to Gopuff in connection with the transaction. Cooley LLP acted as Gopuff’s legal advisor. J.P. Morgan provided financial advisory services to BevMo! Kirkland & Ellis LLP acted as BevMo!’s legal advisor in connection with the transaction.