FTC requires divestiture in 365 Retail Markets acquisition of Cantaloupe

The Federal Trade Commission required 365 Retail Markets LLC to divest a competing business to complete its 848 million dollar acquisition of Cantaloupe Inc. The deal would combine the two largest providers of micromarket kiosks and related software and services. 365 Retail Markets LLC is controlled by Garage Topco LP. Micromarkets are small unattended convenience stores often found in offices and breakrooms. They provide access to affordable, freshly prepared food that is not available in vending machines. Under the proposed consent order, 365 Retail Markets LLC will divest Cantaloupe Inc.'s Three Square Market business to Seaga Manufacturing Inc. Seaga Manufacturing Inc. has current offerings in unattended foodservice retail that do not compete with micromarkets. Seaga Manufacturing Inc. is positioned to establish itself as a tech-enabled, vertically integrated competitor in micromarket kiosks. The consent order settles charges that the acquisition will eliminate head-to-head competition. It is likely to drive up the price for micromarket kiosks and related software and services while reducing product and service quality. Higher micromarket kiosk costs are likely to be passed on to consumers in the form of higher food prices. The order requires 365 Retail Markets LLC to offer integrations between its software and hardware on reasonable and non-discriminatory terms. Mr. Edward Buthusiem will be appointed as a monitor to oversee compliance. For a period of 10 years, 365 Retail Markets LLC shall not acquire any interest in any company involving micromarket kiosks in the United States without providing advance written notification to the Commission. The Commission voted 2-0 to issue the complaint and accept the consent agreement for public comment. The public will have 30 days to submit comments on the proposed consent agreement package.