HelloFresh Announces Agreement to Acquire Australian Manufacturer Youfoodz for 93M Dollars; Tom Rutledge, Dominik Richter, and Lance Giles Provide Insight
BERLIN & SYDNEY - With the boom in at-home cooking spurred by the pandemic continuing to inspire consumers to take their meals at their dining room tables instead of going out, prepared meal companies are implementing new strategies to fortify their place in the industry. HelloFresh SE is one such name, as it recently announced it has entered in to a Scheme Implementation Deed under which it will acquire 100 percent of the share capital in Youfoodz Holdings Limited, one of Australia’s leading ready-to-eat meal services offering fresh, healthy chef-prepared meals as well as drinks and snacks through delivery and retail, for approximately $93 million USD.
“We are very excited to welcome Youfoodz and its CEO Lance Giles to our group. We are impressed by Youfoodz’ strong product and manufacturing capabilities and are looking forward to jointly delight Australians with delicious, healthy, and convenient meals. Youfoodz's complementary products and capabilities backed by a well-known brand and highly capable team will allow us to serve more meal occasions to more people. We look forward to being able to contribute our expertise to jointly capitalise on a strong growth opportunity,” said Tom Rutledge, CEO of HelloFresh Australia and New Zealand.
This intended acquisition of Youfoodz is another step in HelloFresh’s strategy to evolve into the leading global D2C food solutions company, according to a press release. Through this deal, HelloFresh’s ready-to-eat capabilities will be increased and its total addressable market will expand.
Across Australia, ready-to-eat meal delivery services have seen rapid growth, especially due to convenience and quality. HelloFresh recently launched its value brand EveryPlate in the country, making the intended acquisition of Youfoodz a logical step as it looks to grow its Australian brand portfolio and product offerings.
“Following the successful acquisition of Factor in the U.S., we consider the intended acquisition of Youfoodz and the expansion of our ready-to-eat offering an important component of our growth strategy. The popularity of ready-to-eat services in Australia in a well-established and growing sector offers us a good opportunity to further strengthen our position by offering further choice of meal solutions and price points to our customers,” added Dominik Richter, CEO of HelloFresh in the United States.
The total purchase price for the acquisition sits at approximately $125 million AUD ($93 million USD) and will be paid from cash on balance sheet.
This intended acquisiton of Youfoodz will bring together HelloFresh’s expertise in a in direct-to-consumer marketing, supply chain management, and technology with the Austalia-based company’s strength in developing, manufacturing and distributing delicious ready-to-eat meals, operations and strong brand recognition across the country.
Youfoodz is one of Australia’s fastest growing consumer food brands and specializes in ready-to-eat fresh meals with a focus on health, local sourced ingredients, and next day delivery. As part of the deal, the company will continue to operate under its own brand and will become more available to consumers through a subscription-oriented online platform.
“Our mission has always been to provide Aussies with access to fresh and healthy ready-made meals, snacks and drinks that easily adapt to their lifestyles. Since our inception in 2012, we are proud to say that we have delivered over 60 million ready-made meals to our home delivery, retail, and corporate customers,” commented Youfoodz CEO Lance Giles. “We are excited about the prospect of joining the HelloFresh group. This is a significant endorsement of our brand and the success we have enjoyed as a business in the ready-made meal sector. Partnering with a global leader like HelloFresh will help us accelerate growth of our business and enhance our customer offering through new menu offerings, customer initiatives and enriched service levels.”
The scheme is subject to customary conditions including shareholder approval, Federal Court of Australia approval, no prescribed occurrences becoming effective, and no occurrence of a material adverse change. Subject to the conditions being satisfied, the deal and the acquisition of Youfoodz is expected to be finalized in October 2021.
What will be HelloFresh’s next play in its global growth strategy? Stick with AndNowUKnow for the answers.