Whole Foods plus Wild Oats

Hold on to your granola bar - Whole Foods Inc. said it will buy Wild Oats for $565 million.
This story by The Packer's Pamela Riemenschneider illuminates:

The companies announced Feb. 21 they had signed a definitive merger agreement under which the Austin, Texas-based retailer will purchase Wild Oats’ common stock for approximately $565 million. Whole Foods also will assume Wild Oats’ existing net debt, estimated at $106 million.“Our companies have similar missions and core values, and we believe the synergies gained from this combination will create long-term value for our customers, vendors and shareholders as well as exciting opportunities for our new existing team members,” John Mackey, Whole Foods co-founder, chairman and chief executive officer, said in a news release.
Mackey said it could take up to two years to fold Wild Oats’ operations into Whole Foods, which is similar to other acquisitions made by the natural foods retailer.“We expect this acquisition to be similar and that over time we will recognize significant synergies through G&A cost reductions, greater purchasing power and increased utilization of facilities,” he said. “We are particularly excited to gain many talented team members who will provide valuable support in reaching our growth goal of $12 billion in sales in 2010.”According to the companies, Wild Oats’ largest stakeholder, the Yucaipa Cos., which bought about 18% of Wild Oats’ shares in 2005, has committed to the sale.

TK: The market likes the fact that Whole Foods absorbed a competitor, but I wonder if organic growth is such that another Whole Foods-like retailer will spring up to present a fresh challenge.