FTC decision - Whole Foods to divest 32 stores

This just across the inbox from Food Partners Sunday afternoon:

The Food Partners, LLC Appointed Divestiture Trustee for FTC Settlement of Whole Foods Acquisition of Wild Oats Stores

WASHINGTON, DC, March 8, 2009 – The Federal Trade Commission announced on Friday a settlement with Whole Foods Market, Inc., that intends to substantially restore competition that was allegedly eliminated by Whole Foods’ 2007 acquisition of its closest rival, Wild Oats Markets, Inc., and resolves agency charges that the acquisition violated federal antitrust laws. Under the consent order, Whole Foods will sell 32 premium natural and organic supermarkets and related assets. Of the 32 stores, 12 operate under the Wild Oats banner and one operates under the Whole Foods banner. The remaining 19 stores are closed locations.

The order immediately places the responsibility for marketing and selling the stores with a divestiture trustee, The Food Partners LLC, who will have six months to sell the stores and related assets to one or more FTC-approved buyers. If the trustee has not sold the assets within six months, the Commission may extend the time for an additional six months provided a good-faith offer has been made in the initial six month time period. The order also requires Whole Foods to maintain the viability and competitiveness of the operating stores until the divestiture is complete.

In addition to requiring the divestiture of all rights to 32 stores, Whole Foods also is required to divest related Wild Oats intellectual property, including unrestricted rights to the “Wild Oats” brand, which retains significant name recognition and loyalty among consumers. These assets will allow one or more Commission-approved buyers to re-establish competition with Whole Foods in the majority of the markets in which the agency alleged the acquisition would reduce competition and harm consumers through higher prices and reduced quality and services.

The Food Partners, LLC (TFP) headquartered in Washington DC, is the nation's preeminent investment banking firm to the food industry. TFP provides merger, acquisition and divestiture services, private placements of debt and equity capital, financial restructuring, strategic advisory and loan portfolio services. Please visit The Food Partners’ Web site for the depth of services provided, experience and contact information: www.thefoodpartners.com.