Investors Delivering $120 Million to Peapod

Peapod Inc. said it will get $120 million from investors including Leon Black and Ronald Burkle to help fund the grocery deliverer’s expansion. The investors are Black’s Apollo Management, Burkle’s Yucaipa Cos., Pequot Capital Management Inc. and GRP II. The money will help Skokie, Ill.-based Peapod keep pace with Internet rivals Webvan Inc., NetGrocer Inc. and HomeGrocer.com Inc., as well as traditional supermarkets such as Kroger Cos. and Albertson’s Inc. that are moving online. Peapod shares fell $1.06 to close at $9.94 on Nasdaq. Los Angeles-based Yucaipa specializes in acquiring and managing grocery chains. Apollo, based in New York, had invested in Fred Meyer and Ralphs Grocery Co.