Meal kit company HelloFresh has agreed to acquire Factor75, a fully-prepared meal delivery service in the US, for up to $277 million.
The acquisition of the Illinois-based company marks the next step in HelloFresh’s growth plan in the US, as it aims to strengthen its leading position and expand its customer base.
Founded in 2013, Factor75 is a provider of fully-prepared, fresh meals with a focus on health and wellness. The company’s portfolio of breakfast, lunch and dinner options feature keto, paleo, low-carb, vegetarian, plant-based and high protein meals.
As part of the deal, HelloFresh will gain its first office in the Chicago metropolitan area, as well as four production and fulfilment facilities. According to HelloFresh, Factor75’s full year revenue for 2020 is expected to reach around $100 million.
“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,” said Uwe Voss, CEO of HelloFresh US.
Upon completion of the deal, Factor will join HelloFresh’s existing US brand portfolio including HelloFresh, EveryPlate and Colorado-based Green Chef.
“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,” added Voss.
Mike Apostal, CEO of Factor75, said: “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.”
Subject to customary closing conditions, the deal is expected to be completed within the next few months. Under the terms of the deal, $177 million is payable upon closing, while up to $100 million is in the form of an performance-based earn-out.
© FoodBev Media Ltd 2020