Meal kit supplier HelloFresh acquires Factor75, a company specialising in healthy ready meals, in the United States.
HelloFresh describes the takeover as "the next step" in its US expansion plan to strengthen its leading position and increase its overall market. The company, offering meal boxes to cook at home, will pay up to 277 million dollars (233 million euros) for Factor75. Of this, 177 million dollars (149 million euros) will be payable immediately upon completion of the transaction. The remainder of the amount, which could turn out to be as much as 100 million dollars (84 million euros), is part of an earnout arrangement. In other words, the final selling price is partially dependent on the future performance of Factor75.
HelloFresh now groups four food brands in the United States: in addition to its own brand, they have Factor75, EveryPlate (affordable meal kits) and Green Chef (geared towards healthy food).
As a result of the new acquisition, HelloFresh will have its first office in Chicago's metropolitan area, together with four production and fulfilment facilities. In addition to that, a new facility will soon be added, capable of supplying over 500 million dollars (420 million euros) in ready meals annually.
Founded in 2013, Factor75 specialises in providing fresh ready meals catered towards health and wellness. For the whole of 2020, the company expects to achieve a turnover of approximately 100 million dollars (84 million euros).