Bloomberg's Katie Roof reported today that goPuff was in talks to buy alcoholic beverage chain BevMo, and goPuff just put out a press release confirming that it has reached an acquisition agreement for a price of $350 million.
As co-founder and co-CEO Yakir Gola explained last month, the startup delivers the kinds of products you'd find in a convenience store (such as over-the-counter medicine, baby food and alcohol) in 30 minutes or less — and it offers those deliveries 24 hours a day, seven days a week.
GoPuff hadn't attracted much media attention until recently, despite operating in more than 500 U.S. cities, with backing from Accel, SoftBank Vision Fund and others. That started to change with the recent round — which brought its total funding to $1.35 billion — and goPuff is making an even bigger splash by acquiring an iconic retailer.
The announcement suggests that by acquiring BevMo (which operates 161 stores throughout California, Arizona and Washington), the company can accelerate its expansion into California.
For one thing, goPuff can now promote its delivery offerings to BevMo's brick-and-mortar customers. The company also says it will integrate BevMo's brick-and-mortar stores into its micro-fulfillment network.
“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 in a statement. “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.”
The announcement included a statement from BevMo CEO Josiah Knutsen said as well.
“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,” Knutsen said. “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 deal is expected to close within 30 days. BevMo was previously owned by private equity firm Towerbrook Capital Partners.