Berlin-born HelloFresh announced its US subsidiaries have entered into an agreement to buy Factor 75 for up to $277 million. Of that amount, $177 million is payable upon the closing of the transaction, while up to $100 million is structured as performance-based earn-out. In a press release, the German company says it’s acquiring “all of the outstanding equity interests."
Founded in Chicago back in 2013, Factor delivers fully prepared meals rather than DIY meal kits. Users can plan these meals online according to popular diets and other health factors. The company’s full year revenue for 2020 is expected to reach around $100 million.
“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,” says Uwe Voss, CEO of HelloFresh US.
With the acquisition, HelloFresh will gain its first office in Chicago, along with four production and fulfillment facilities.
The transaction is subject to customary conditions, closing only after a waiting period under the US Hart-Scott-Rodino Antitrust Improvements Act and with the approval of the majority of Factor’s shareholders.
HelloFresh currently operates in the US (other brands include EveryPlate and Green Chef), Canada, New Zealand, the UK, Germany, the Netherlands, Belgium, Luxembourg, Australia, Austria, Switzerland, Sweden, France and Denmark.