Whole Foods to Buy Wild Oats

U.S. natural foods grocer Whole Foods Market Inc. said Wednesday it would buy rival Wild Oats Markets Inc. for $565 million.

Whole Foods offered $18.50 a share in cash, which the companies said was 23 percent more than Wild Oats’ one-month average closing price.

Whole Foods will also assume Wild Oats’ existing net debt, which was about $106 million Sept. 30.

The companies expect to close the deal in April.

The combined chain expects to recognize significant synergies through overhead cost reductions, greater purchasing power, increased use of support facilities and new talent, Whole Foods said.

We are particularly excited to gain many talented team members who will provide valuable support in reaching our growth goal of $12 billion in sales in 2010, Whole Foods Chief Executive John Mackey said.

Wild Oats of Boulder, Colo., has 110 stores in 24 U.S. states and British Columbia and had about $1.2 billion in annual sales.

Whole Foods of Austin, Texas, has 191 stores in the United States, Canada and Britain and had 2006 sales of $5.6 billion.