Chicago's Factor75, a ready-to-eat meal startup, is being acquired by HelloFresh in a deal worth up to $277 million.
Berlin-based meal kit company HelloFresh announced Monday that its U.S. subsidiaries have agreed to acquire Factor75 in a move that aims to strengthen the company's presence in America. HelloFresh agreed to pay $177 million for Factor75 upon the close of the deal, and another $100 million in performance-based earn-outs and management incentives, the company said.
Factor75, founded in 2013 by Nick Wernimont and led by CEO Mike Apostal, offers a fully-prepared meal delivery service featuring healthy, chef-inspired options. Offering dietitian-designed weekly selections, Factor75's meals are delivered to users' doorsteps and ready to eat in minutes.
The company is expected to do around $100 million in revenue this year.
“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,” Apostal said in a statement. “By joining HelloFresh, the market leader in meal kits in the US, Factor will leverage new resources and category expertise to accelerate our growth, enhance our brand positioning and further amplify our mission.”
Factor75 raised less than $16 million in outside capital. Its investors include Listen Ventures, Bluestein Ventures, Marcy Venture Partners and Hyde Park Angels.
“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," Uwe Voss, CEO of HelloFresh U.S., said in a statement.
The deal gives HelloFresh its first office in the Chicago area, along with four production and fulfillment facilities. The company said it's planning to open a new facility in the near future that can deliver more than $500 million worth of prepared meals annually.
Founded in 2011, HelloFresh is among the largest meal kit delivery companies in the world. Last quarter It delivered over 162 million meals and to its five million active customers. The company went public on the Frankfurt Stock Exchange in November 2017.
The deal is expected to close in early 2021.
