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HelloFresh to Acquire Youfoodz for 93M Dollars; Tom Rutledge, Dominik Richter, and Lance Giles Provide Insight

HelloFresh to Acquire Youfoodz for 93M Dollars; Tom Rutledge, Dominik Richter, and Lance Giles Provide Insight


BERLIN & SYDNEY
Wednesday, July 14th, 2021

HelloFresh is making waves on the newswire this week as it recently announced it has entered a scheme, a Scheme Implementation Deed that is. The U.S.-based meal-kit delivery company has made it known it or one of its directly or indirectly wholly-owned Australian subsidiaries will acquire 100 percent of Youfoodz Holdings Limited’s share capital for $0.93 AUD per share in cash. The total purchase price for the acquisition is approximately $125 million AUD (around $93.5 million USD) and will be paid from cash on a balance sheet.

Tom Rutledge, Chief Executive Officer, HelloFresh Australia and New Zealand“We are very excited to welcome Youfoodz and its CEO Lance Giles to our group. We are impressed by Youfoodz’s strong product and manufacturing capabilities and are looking forward to jointly delight Australians with delicious, healthy, and convenient meals,” said Tom Rutledge, CEO of HelloFresh Australia and New Zealand. “Youfoodz’s complementary product and capability backed by a well-known brand and highly capable team will allow us to serve more meal occasions to more people. We look forward to being able to contribute our expertise to jointly capitalize on a strong growth opportunity.”

Youfoodz is one of Australia’s leading ready-to-eat meal services, offering fresh and healthy chef-prepared meals as well as snacks and drinks through delivery (D2C) and retail (B2B).

HelloFresh will acquire 100 percent of Youfoodz Holdings Limited’s share capital in a purchase worth approximately $125 million AUD (around $93.5 million USD)

With this acquisition in place, HelloFresh is primed to becoming a leading global D2C food solutions group, further increasing its ready-to-eat capabilities and expanding its total addressable market.

Dominik Richter, Chief Executive Officer, HelloFresh, United States“Following the successful acquisition of Factor in the U.S., we consider the intended acquisition of Youfoodz and the expansion of our ready-to-eat offering an important component of our growth strategy,” Dominik Richter, CEO of HelloFresh in the United States, added. “The popularity of ready-to-eat services in Australia in a well established and growing sector offers us a good opportunity to further strengthen our position by offering further choice of meal solutions and price points to our customers.”

According to the release, HelloFresh recently launched its value brand EveryPlate in Australia; the intended acquisition of Youfoodz is a natural next step for HelloFresh to further enhance its Australian brand portfolio and product offering.

Lance Giles, Chief Executive Officer, Youfoodz“Our mission has always been to provide Aussies with access to fresh and healthy ready-made meals, snacks, and drinks that easily adapt to their lifestyles. Since our inception in 2012, we are proud to say that we have delivered over 60 million ready-made meals to our home delivery, retail, and corporate customers,” said Youfoodz CEO Lance Giles. “We are excited about the prospect of joining the HelloFresh group. This is a significant endorsement of our brand and the success we have enjoyed as a business in the ready-made meal sector. Partnering with a global leader like HelloFresh will help us accelerate [the] growth of our business and enhance our customer offering through new menu offerings, customer initiatives, and enriched service levels.”

Both companies will be unified in their purpose to provide Australians with delicious, high-quality, and affordable fresh meals. The intended acquisition offers the opportunity for ready-to-eat meals to become an important component of HelloFresh’s growth strategy. Youfoodz will continue to operate under its own brand and will become increasingly available to its customers on a recurring basis through a subscription-oriented tech platform.

Youfoodz is one of Australia’s leading ready-to-eat meal services, offering fresh and healthy chef-prepared meals as well as snacks and drinks through delivery (D2C) and retail (B2B)

Pursuant to the Scheme Implementation Deed, a formal process will evolve over the coming months which will be governed by Australian takeover law and which will include the appointment of an independent expert to prepare an independent expert’s report on the scheme, publication of a scheme booklet, shareholder meeting of Youfoodz shareholders to approve the scheme, and court hearings. Subject to the conditions of the scheme being satisfied, the scheme and the acquisition of Youfoodz are expected to be finalized in October 2021.

To learn more about the acquisition, click here.

With foodservice and meal-kit deliveries maintaining their hold on consumer wallets, how will the industry continue to pivot? Stay tuned as Deli Market News will report.

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