German meal-kit firm HelloFresh has acquired US ready-to-eat meal company Factor75 in a deal worth up to US$277m.
HelloFresh said the deal, done through its US subsidiary, marks the next step in its growth plan in the country by allowing it to tap into new customer segments and increase capacity.
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Under the terms of the acquisition, $177m is payable upon the closing of the transaction and an aggregate amount of up $100m is structured as “performance-based earn-out”.
Uwe Voss, CEO of HelloFresh US, 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.”
Through the deal, HelloFresh will gain its first office in the Chicago area, along with four production and fulfilment facilities.
A new facility will be launched “in the near future” to provide capacity to deliver more than $500m worth of prepared meals annually.
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By GlobalDataFounded in 2013, Illinois-based Factor specialises in ready-to-eat meals with a focus on health and wellness. Its menu of breakfast, lunch and dinner options features Keto, Paleo, low-carb, vegetarian, plant-based and high protein meals.
Its full year revenue for 2020 is expected to reach around $100m.
Mike Apostal, the company’s CEO, 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.”
HelloFresh was founded in Berlin in 2011 and went public on the Frankfurt Stock Exchange in 2017. It now has operations in nine countries.
