NEW YORK — US subsidiaries of meal kit company HelloFresh SE have entered into an agreement to acquire Factor75, Inc., a Chicago-based ready-to-eat meal startup.
The transaction is valued at up to $177 million and will expand HelloFresh’s presence in the United States, the companies said.
Factor’s meal delivery service offers a rotating menu of breakfast, lunch and dinner options featuring keto, paleo, low-carb, vegetarian, plant-based and high protein meals. It is expected to reach around $100 million in revenue in 2020.
Factor will be the fourth brand in HelloFresh’s US portfolio, joining HelloFresh, EveryPlate and GreenChef.
“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,” said Uwe Voss, chief executive officer of HelloFresh US. “We have four high-growth food brands in our group, all benefiting from our strong growth engine, technology and supply chain infrastructure.”
The deal will see HelloFresh gain its first office in the Chicago metropolitan area, along with four production and fulfillment facilities. A fifth facility currently being built will provide the capacity to deliver more than $500 million worth of prepared meals annually.
“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 US, Factor will leverage new resources and category expertise to accelerate our growth, enhance our brand positioning and further amplify our mission.”