Nestlé has agreed to acquire a majority stake in UK meal kit firm Mindful Chef, in a move to strengthen its direct-to-consumer offerings in the UK and Ireland.
Founded in 2015, Mindful Chef offers a range of nutritionally balanced meals through its recipe box service, with 16 options to choose from each week. The company’s portfolio also includes a range of prepared frozen meals.
Mindful Chef’s three founders, who are part of its management team, will remain shareholders and continue to run the company with support from Nestlé.
Some existing shareholders will also retain their stake in the company while Piper, a private equity firm which last year invested £6 million into Mindful Chef, will exit the business.
“Giles, Myles and Rob have built a brand with a clear purpose, offering consumers a trustworthy proposition that makes healthy eating easy through a direct-to-consumer subscription model,” said Stefano Agostini, CEO of Nestlé UK & Ireland.
“Nestlé and Mindful Chef share an ambition to increase the availability and convenience of healthy food while paying close attention to how ingredients are sourced and reducing food waste. It means this is an ideal partnership for both parties as Nestlé continues to transform its portfolio and Mindful Chef accelerates its growth plans.”
Tim Lee, CEO of Mindful Chef, added: “We constantly challenge ourselves to be aware of our actions and the wider impact we have. The consumer response has been great and we expect to see sales of over £50 million this year.
“Nestlé’s experience and support gives us the opportunity to build on this success in the UK and beyond, making healthy eating easy for more consumers.”
Through the acquisition, Nestlé continues to expand its portfolio of direct-to-consumer businesses, which also includes coffee brands Nespresso and Nescafé Dolce Gusto.
The financial terms of the deal, which is expected to close before the end of the year, have not been disclosed.
Nestlé recently acquired US meal subscription service Freshly in a deal that valued the company at $950 million, with further potential payments of up to $550 million.
© FoodBev Media Ltd 2020