Delivery service GoPuff has revealed that it will buy BevMo, an alcoholic beverage specialty retailer on the West Coast, for upfront consideration of $350 million.
“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.
With a distribution network of more 200 micro-fulfillment centers, Philadelphia-based GoPuff serves customers in more than 500 U.S. cities. The acquisition significantly accelerates GoPuff’s entry into California, and will provide millions of new customers in BevMo’s network of neighborhood stores with access to immediate delivery of everyday items, including baby and pet products, cleaning supplies, food, and alcohol, along with local favorites.
BevMo’s footprint of 161 neighborhood stores located throughout California, Arizona and Washington provides extensive infrastructure for GoPuff 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. Through GoPuff, BevMo customers will soon have access to instant delivery of alcoholic beverages as well as everyday items across GoPuff’s rapidly expanding product inventory.
“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 Concord, California-based 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 expected to close within 30 days, subject to customary closing conditions.