HelloFresh SE, U.S. subsidiaries of a meal kit company, has entered into an agreement to acquire Factor75, Inc.
Food Business News reported that HelloFresh recently made a move to buy Factor75, an Illinois-based food firm that sells ready-to-eat meals focused on health and wellness.
The agreement between the two was set at $277 million in cash. An amount of $177 million would be paid once the deal is closed, and another $100 million would be given as performance-based earnings and management incentives.
On related reports from Business Wire, the acquisition is a significant move from HelloFresh to fulfill its expansion plan in the U.S. while reinforcing its current leading position.
Additionally, it brings together HelloFresh's global market expertise in delivering fresh ingredients and Factor's proven success in ready-to-eat meals.
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HelloFresh
Founded in Berlin in November 2011, HelloFresh went public on the Frankfurt Stock Exchange in November 2017. It has offices in various locations, including New York, Berlin, London, Amsterdam, Auckland, Paris, and Copenhagen.
It also operates in the United States, the United Kingdom, the Netherlands, Germany, Luxembourg, Belgium, Austria, Australia, Canada, Switzerland, Sweden, New Zealand, Denmark, and France.
HelloFresh is said to be the world's leading meal-kit company. It has reached five million active customers and delivered over 162 million meals during the third quarter of this year.
Factor75
On the other hand, Factor75 hails from Batavia, Illinois. It is reported to be backed by leading consumer investors Listen Ventures, Bluestein Ventures, and Marcy Venture Partners and does deliveries worldwide.
It is known to have a fully-prepared meal delivery service. At the same time, the company also considers having a whole new approach to fresh-prepared food.
Factor75 offers a weekly rotating menu of breakfast, lunch, and dinner. These meals are hand-crafted by gourmet chefs and optimized by dietitians.
For healthy, clean eating, Factor75 assures that their meals are free from refined sugars, gluten, soy, hormones, antibiotics, and GMOs.
HelloFresh Benefiting From The Acquisition
It is without a doubt that ready-to-eat meals accessible directly to consumers has the potential to grow into a multi-billion dollar category. This is what the CEO of HelloFresh US, Uwe Voss, strongly believes after the said deal between HelloFresh and Factor75.
He also adds that with HelloFresh, Factor, Green Chef, and EveryPlat, they already have four strong food brands.
HelloFresh is reported to have four production and fulfillment facilities and its first office in the Chicago metropolitan area.
A new facility will be revealed soon and is expected to provide the capacity to deliver over $500 million worth of prepared meals every year.
Meanwhile, the full-year revenue of Factor75 for 2020 is expected to reach around $100 million.
According to Factor75 CEO, Mike Apostal, Factor75 has been at the intersection of taste, health, and convenience ever since its founding. The company provides simple, clean eating that tastes great and fuels consumers' active and busy lifestyles.
By joining HelloFresh, it will have new resources and category expertise to accelerate its growth, enhance brand positioning, and amplify its mission.
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