Royal Ahold to Acquire the Rest of Peapod

Peapod Inc. shares surged after Dutch supermarket giant Royal Ahold announced plans to buy the rest of the online grocer for $2.15 a share, or $35 million in cash. Royal Ahold already holds a 42% stake in the online grocer.

Peapod says it’s making money in some markets and is on track for overall profitability in 2003. The company delivers groceries in metropolitan Chicago; Boston; southern Connecticut; Long Island, N.Y.; and Washington, D.C.

Shares of Skokie, Ill.-based Peapod rose 86 cents to $2.11 on Nasdaq.