Nestlé USA acquires prepared-meal producer Freshly
Nestlé announced that it has acquired Freshly, a fresh-prepared meal delivery service in the United States.
The deal values Freshly at US$950 million (AU$1.35 billion), with potential earnouts up to $550 million contingent on the successful growth of the business.
The transaction was signed and closed on 30 October 2020.
Founded in 2015, Freshly delivers a menu of chef-cooked meals to customers across the country.
Nestlé said the move brings together their research and development capabilities with Freshly’s specialised analytics platform and distribution network.
Steve Presley, Nestlé USA Chairman and CEO, said the company was excited to welcome Freshly to the Nestlé family.
“Consumers are embracing e-commerce and eating at home like never before. It’s an evolution brought on by the pandemic but taking hold for the long term,” Presley said.
“Freshly is an innovative, fast-growing, food-tech start-up, and adding them to the portfolio accelerates our ability to capitalise on the new realities in the US food market and further positions Nestlé to win in the future.”
Nestlé purchased an approximate 16% stake in Freshly in 2017 as a strategic move to evaluate and test the burgeoning market.
The company said Freshly is now shipping more than one million meals per week to customers in 48 states. In 2020, its forecasted sales are $430 million.
Freshly CEO Michael Wystrach said the company was extremely excited to expand its relationship with Nestlé.
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