As was rumored over the weekend, Amazon today confirmed it has reached an agreement to acquire Quidsi Inc., the parent company responsible for Diapers.com and Soap.com.
"I'm not sure which is more unpleasant -- changing diapers, paying too much for them, or running out of them," said Jeff Bezos, Founder and CEO of Amazon.com. "This acquisition brings together two companies who are committed to providing great prices and fast delivery to parents, making of the chores of being a parent a little easier and less expensive."
The deal includes about $500 million in cash, while Amazon also assumes the responsibility of roughly $45 million in debt, bringing the total value to around $545 million. Pending approval of the deal, Quaidsi will continue to operate independently with its same management team in place, Amazon said.
According to a Wall Street Journalreport that preceded the official announcement, Amazon's latest move bodes well for the consumer staples business. Everyday items like cleaning supplies and paper goods are still a small fraction of online sales, but is growing fast. Household product sales reached about $10 billion in 2009, a $4 billion increase since 2003.