Ahold Delhaize, the Netherlands-based owner of US supermarket chains Stop & Shop, Giant and Food Lion, is buying the online grocery service FreshDirect as demand for online grocery shopping accelerates in the pandemic.
The two companies announced the agreement Wednesday, but did not disclose terms of the transaction. The deal is expected to close next year. FreshDirect will retain its name and continue to operate out of New York City, where it was launched in 2002.
Ahold Delhaize (ADRNY), which was formed in 2016 from a merger of Ahold and Delhaize Group, is one of the largest grocery operators in the United States. It said that FreshDirect will help it reach new customers and drive sales in the lucrative New York market. FreshDirect said gaining access to the Dutch company’s size and scale will allow it to grow.CNN