The meal kit sector continues to be a competitive foodservice market, and Hello Fresh has upped the stakes yet again. The meal kit company recently acquired the outstanding equity interests of Factor 75, including its subsidiary Factor, for $277 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. With Factor, HelloFresh, EveryPlate, and Green Chef, we have four high-growth food brands in our group, all benefiting from our strong growth engine, technology, and supply chain infrastructure,” said Uwe Voss, CEO of HelloFresh U.S.
The acquisition marks the next step in HelloFresh’s growth plan in the U.S., as it looks to strengthen its position and expand its total addressable market.
The transaction brings together HelloFresh’s global market expertise in delivering fresh ingredients to customers’ doorsteps across 14 countries with Factor 75’s proven success in ready-to-eat meals. With the addition of Factor to its existing U.S. brand portfolio, HelloFresh customers will benefit from a diverse and distinct meal-offering for every need, occasion, and price point.
“Since our founding, Factor has been at the intersection of taste, health, and convenience, providing simple, clean eating that not only tastes great but fuels consumers’ active and busy lifestyles,” said Mike Apostal, CEO of Factor. “By joining HelloFresh, the market leader in meal kits in the U.S., Factor will leverage new resources and category expertise to accelerate our growth, enhance our brand positioning and further amplify our mission.”
According to a press release, this acquisition will give HelloFresh its first office in the Chicago metropolitan area, along with four production and fulfillment facilities. A new facility, which will be launched in the near future, will provide the capacity to deliver more than $500 million worth of prepared meals annually. Factor’s full-year revenue for 2020 is expected to reach around $100 million. Due to the complementary nature in product offerings, the acquisition of Factor will drive supply chain and operational synergies for both companies.
The meal kit sector continues to be as active as ever, and Deli Market News will be here to report the latest.