HelloFresh Acquires Organic Meal-Kit Startup Green Chef
HelloFresh has acquired Green Chef, the organic meal-kit startup geared towards vegan, gluten-free, and Paleo diet eaters, as the German company beefs up its holdings to better compete with U.S. rival Blue Apron.
HelloFresh, which listed on the Frankfurt stock exchange in November, did not disclose terms of the acquisition. The purchase could help HelloFresh overpower Blue Apron and other competitors in the U.S., its biggest market. The deal stands out because Green Chef is the U.S.’s first certified organic and gluten-free meal kit company.
HelloFresh is expected to report full-year earnings Wednesday.
Green Chef will add its organic menus to HelloFresh’s product portfolio in a bid to attract a more diverse group of consumers. HelloFresh also gains a new office and production facility in Colorado under the deal. Green Chef operations will be integrated into HelloFresh, the companies said.
In January, HelloFresh reported its preliminary fourth-quarter sales rose from about 59% to about $309 million after a rise of 49% in the previous nine months.
HelloFresh delivers more than one million meals per week in the U.S. and has nearly 1.5 million active customers across 10 markets globally, according to the company.
As HelloFresh snaps up competitors, Blue Apron is looking for other ways to boost growth that has recently stalled. Earlier this month, Blue Apron said it would start selling its prepared dinners in stores later this year.