November 2, 1999

1 Min Read
Wild Oats Acquisitions Put Store Total Past Whole Foods

Wild Oats Markets (NASDAQ:OATS) announced a deal in late October to purchase 13 stores, putting it at 105 locations, inching it past its major competitor, Austin, Texas-based Whole Foods Markets (NASDAQ:WFMI), which owns 100 stores and has dozens in development.

Wild Oats, based in Boulder, Colo., is acquiring the stores in two separate transactions totaling $34 million in cash and stock. Sun Harvest Farms Inc. has nine stores in Texas, and Wild Harvest has four stores in the Boston area. Wild Oats has added 37 stores this year and has 23 stores in the works, including 6 relocations. The company's 3Q profits increased 12 percent to $4.4 million; it planned to split its stock 3-for-2, payable to shareholders Dec. 1.

With such changes, it's no wonder that investors are jumping onto the train. During the Banc of America Securities (BAS) investment conference in October, Gary Giblen, BAS senior research analyst, rated Wild Oats as a "strong buy" and Whole Foods as a "buy". He said the solid growth exhibited by these companies has the defensive qualities relied upon during a recession or a bear market.

Subscribe and receive the latest insights on the health and nutrition industry.
Join 37,000+ members. Yes, it's completely free.

You May Also Like