Online Wholesale Retailer Boxed Teases $1 Billion Sale
NEW YORK - U.S. online wholesale retailer Boxed is considering its options for strategic growth, some of which include a sale or going public through a merger with a blank-check acquisition company that could value it at around $1 billion.
According to Reuters, the online retailer has hired investment bank Citigroup to advise on the sale, the sources said, requesting anonymity as the matter is private. The company has held discussions with potential buyers including so-called special-purpose acquisition companies (SPACs), the sources said, cautioning that it is possible no deal will ultimately materialize.
Both Boxed and Citi declined to comment.
Boxed is often referred to by some of its customers as a Costco for millennials. The New York-based company offers products from fresh groceries to office supplies without membership fees, and also provides free delivery for orders over $49.
Like many e-commerce businesses, it has benefited from a boom in online sales in the United States as consumers stay away from brick-and-mortar stores due to the COVID-19 pandemic. Boxed has seen a steady uptick in new customer signups since March, one of the sources said.
How will Boxed continue to grow and take hold in the retail space? AndNowUKnow will continue to report.