Kroger and Home Chef in US$200 million merger
One of the largest meal kit delivery companies in the US, Home Chef, which delivers more than 3 million meals each month, is merging with Kroger to significantly accelerate availability of meal kits and to profoundly change how people shop for, prepare and cook their meals.
The initial transaction price is US$200 million and future earn-out payments of up to $500 million over five years are contingent on achieving certain milestones, including significant growth of in-store and online meal kit sales. The pending merger comes on the heels of Home Chef’s 150% growth in 2017, $250m in revenue and two profitable quarters.
“This merger will introduce Kroger’s 60 million shoppers to Home Chef, enhance our ship-to-home and subscription capabilities, and contribute to Restock Kroger,” said Yael Cosset, Kroger’s Chief Digital Officer.
Home Chef’s offerings complement Kroger’s Prep+Pared offering that is currently available in more than 525 stores.
After the deal closes, Home Chef will operate as a subsidiary of The Kroger Co., maintain its e-commerce business on homechef.com and assume responsibility for Kroger’s meal solutions portfolio. The company will continue to operate its offices and facilities.
Following closing, Kroger will make Home Chef meal kits available to Kroger shoppers, both in stores and online.
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