Meal-kit firm HelloFresh has announced that it has agreed to acquire ready-to-eat meal company Factor75, Inc.
The company described the acquisition as ‘the next step’ in HelloFresh’s growth plan in the US.
The move brings together HelloFresh’s global market expertise in delivering fresh ingredients to customers’ doorsteps across 14 countries with Factor’s proven success in ready-to-eat meals.
Both companies share a strong vision for operational excellence and a data-driven approach to delight customers, HelloFresh added.
'Nascent Food Vertical'
CEO of HelloFresh US, Uwe Voss, said, “Direct-to-consumer ready-to-eat meals are a nascent food vertical that we believe has the potential to grow into a multi-billion dollar category over time.
“With Factor, HelloFresh, EveryPlate, and Green Chef, we have four high-growth food brands in our Group, all benefiting from our strong growth engine, technology, and supply chain infrastructure.”
The Deal
The deal, valued at $277 million in cash, is subject to customary purchase price adjustments.
The amount payable upon the closing of the transaction is $177 million, while an aggregate amount of up to $100 million is structured as performance-based earn-out and management incentives.
The transaction is subject to customary conditions and is currently expected to close within the next months, HelloFresh said.
The acquisition will see HelloFresh opening its first office in the Chicago metropolitan area, along with four production and fulfilment facilities.
The company also plans to launch a new facility equipped to deliver more than $500 million worth of prepared meals annually.
'Taste, Health, Convenience'
Mike Apostal, CEO of Factor, said, “Since our founding, Factor has been at the intersection of taste, health, and convenience, providing simple, clean eating that not only tastes great but fuels consumers’ active and busy lifestyles.
“By joining HelloFresh, the market leader in meal kits in the US, Factor will leverage new resources and category expertise to accelerate our growth, enhance our brand positioning, and further amplify our mission.”
Factor expects to generate revenue of around $100 million in the full year 2020.
The company, founded in 2013, specialises in providing fresh, ready-to-eat meals with a focus on health and wellness.
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