Meal kit company HelloFresh has agreed to acquire Australian ready-to-eat meal manufacturer Youfoodz for AUD 125 million (approximately $93.3 million).
The deal marks an important step in HelloFresh’s growth strategy and will strengthen its direct-to-consumer (D2C) ready-to-eat capabilities; as well as enhance its Australian brand portfolio and product offering.
Youfoodz provides and distributes fresh ready meals, as well as snacks and drinks through both home delivery (D2C) and retail (B2B). Since its establishment in 2012, Youfoodz says it has delivered over 60 million ready-to-eat meals to its home delivery, retail and corporate customers.
The company operates three production facilities in Brisbane, which it claims produce more than 400,000 ready-made meals, 80,000 snacks and 25,000 drinks per week.
“We are impressed by Youfoodz’ strong product and manufacturing capabilities and are looking forward to jointly delight Australians with delicious, healthy and convenient meals,“ said Tom Rutledge, CEO of HelloFresh Australia and New Zealand.
Upon completion of the transaction, Youfoodz will continue to operate under its own brand. HelloFresh says it will make the brand become increasingly available to its consumers through a subscription platform.
According to HelloFresh, Australia has witnessed rapid growth in the ready-to-eat meal delivery service, and the Berlin company recently launched its value brand EveryPlate in the country.
Dominik Richter, CEO of HelloFresh, added: “The popularity of ready-to-eat services in Australia in a well-established and growing sector offers us a good opportunity to further strengthen our position by offering further choice of meal solutions and price points to our customers.”
The deal also comes after HelloFresh acquired Factor75, a prepared meal delivery service in the US.
Youfoodz CEO, Lance Giles, added: “We are excited about the prospect of joining the HelloFresh group. This is a significant endorsement of our brand and the success we have enjoyed as a business in the ready-made meal sector.
“Partnering with a global leader like HelloFresh will help us accelerate growth of our business and enhance our customer offering through new menu offerings, customer initiatives and enriched service levels.”
The transaction – which is subject to customary conditions including shareholder and court approval – is expected to be finalised in October 2021.
© FoodBev Media Ltd 2021
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