HelloFresh Acquires Ready-to-Eat Meal Company Factor 75
BERLIN & NEW YORK - HelloFresh U.S. is gaining traction in the meal kit delivery sector, as it recently announced it has entered into an agreement to acquire all of the outstanding equity interests of Factor 75, including its subsidiary Factor, for $277 million. The acquisition marks the next step in HelloFresh’s growth plan in the U.S. to strengthen its leading position and to expand its total addressable market.
“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,” said Uwe Voss, CEO of HelloFresh U.S.
The total purchase price for the acquisition is up to $277 million in cash, subject to customary purchase price adjustments.
This acquisition brings together HelloFresh’s global market expertise in delivering fresh ingredients to customers’ doorsteps across 14 countries with Factor 75’s proven success in ready-to-eat meals. Both companies share a strong vision for operational excellence and a data-driven approach to delight customers with great meals consumed at home.
“Since our founding, Factor has been at the intersection of taste, health, and convenience, providing simple, clean eating that not only tastes great but fuels consumers’ active and busy lifestyles,” said Mike Apostal, CEO of Factor. “By joining HelloFresh, the market leader in meal kits in the U.S., Factor will leverage new resources and category expertise to accelerate our growth, enhance our brand positioning and further amplify our mission.”
With this acquisition, HelloFresh will gain its first office in the Chicago metropolitan area, along with four production and fulfillment facilities. A new facility, which will be launched in the near future, will provide the capacity to deliver more than $500 million worth of prepared meals annually. Factor’s full-year revenue for 2020 is expected to reach around $100 million. Due to the complementary nature in product offerings, the acquisition of Factor will drive supply chain and operational synergies for both companies.
With the addition of Factor to its existing U.S. brand portfolio, HelloFresh customers will benefit from a diverse and distinct meal-offering for every need, occasion, and price point.
How will HelloFresh, and the meal kit delivery sector as a whole, continue to expand as freshness and convenience remain driving forces? AndNowUKnow will continue to report.