GoPuff is making a big acquisition less than a month after it announced a $380 million round that valued the Philadelphia-headquartered delivery startup at $3.9 billion.
Bloomberg’s Katie Roofing system reported today that goPuff was in talks to purchase liquor chain BevMo, and goPuff just put out a press release confirming that it has reached an acquisition agreement for a rate of $350 million.
As co-founder and co-CEO Yakir Gola explained last month, the start-up delivers the type of products you’d discover in a convenience store (such as over the counter medication, baby food, and alcohol) in thirty minutes or less– and it uses those shipments 24 hr a day, seven days a week.
GoPuff hadn’t brought in much limelights till recently, despite operating in more than 500 U.S. cities, with support from Accel, SoftBank Vision Fund, and others. That started to alter with the recent round– which brought its total financing to $1.35 billion– and goPuff is making an even bigger splash by obtaining a renowned seller.
The announcement suggests that by acquiring BevMo (which runs 161 shops throughout California, Arizona, and Washington), the company can accelerate its growth into California.
For something, goPuff can now promote its delivery offerings to BevMo’s brick-and-mortar consumers. The company likewise states it will incorporate a few of BevMo’s brick-and-mortar shops into its micro fulfillment network, while not changing the customer experience in stores.
“We’re happy to bring goPuff’s operations to California and anticipate investing in talent and genuine estate across the state,” stated goPuff co-founder and co-CEO Rafael Ilishayev in a statement. “Partnering with BevMo! quickly advances our tactical objectives of providing more customers in new locations with a seamless solution for their immediate requirements. Through this acquisition, goPuff will run coast-to-coast, solidifying our existence as a leading, nationwide customer business.”
The announcement consisted of a statement from BevMo CEO Josiah Knutsen said as well.
“Joining goPuff, a company that has created a really separated technique and specified the immediate requirements category will permit us to better fulfill our customers’ developing needs, consisting of delivering everyday basics straight to their doorstep,” Knutsen stated. “We anticipate helping introduce goPuff to California and interacting to even more boost the experience for BevMo! customers and our communities at large.”
The offer is expected to close within thirty days. BevMo was formerly owned by personal equity company Towerbrook Capital Partners.