Kroger is reportedly wooing 'Costco for millennials' company Boxed - and it could sell for $500 million
- Boxed is an online members-only bulk-selling online store.
- Boxed is reportedly in talks to sell to Kroger grocery store for up to $500 million.
- It will reportedly take investment money if a deal is not reached.
Retailers seem to be circling around online retailer Boxed, according to multiple reports.
Speculation swirled in recent weeks, starting with a report by Forbes on January 12 that Kroger and rivals were looking seriously at buying or investing in the company. Forbes said a deal could be worth all the way up to $500 million, more than Boxed latest valuation of $470 million.No deals have been finalized yet, and any potential deal could fall through, though the New York Post reported on January 19 that Kroger is in "advanced negotiations" with Kroger.
Boxed could raise additional capital if a deal isn't reached for an acquisition deal, Forbes reported. The Post also reported that General Mills and Bed Bath & Beyond were also interested in investing in Boxed.
Boxed is billed as the millennial-friendly alternative to wholesale stores like Costco and Sam's Club, the retailer has made a name for itself. A club-based system without the membership fee, Boxed offers items in bulk ranging from household brands and its Prince & Spring private label to services like hotel booking.
Boxed started in 2013, it is about to grow to five distribution centers across the country with $100 million in yearly sales and nearly 300 employees. It has raised over $132 million in investment, including a $100 million in 2016.
Both Boxed and Kroger declined to comment on this story.