Meal kit company HelloFresh has entered into an agreement with the shareholders of Chefs Plate. Chefs Plate is a leading meal kit brand in Canada and pioneer in the local market since its launch in 2014. The German-based HelloFresh said in a statement that the acquisition will allow its Canadian HelloFresh branch to be the market leader in Canada, and the company is targeting revenues of $200 million in 2019.
With the integration of Chefs Plate and its complementary customer base, the Canadian arm of HelloFresh will offer the widest product variety in the meal plan industry to Canadian consumers. In the statement, HelloFresh said “the integration provides significant opportunities to create value with identified synergies of up to $10 million per year through joint procurement and production, as well as marketing efficiencies and leveraging the global HelloFresh technology platform and shared best practices.”
Thomas Griesel, COO and Co-Founder of HelloFresh, said “The integration of Chefs Plate is clearly such a unique opportunity to expand our leadership position across North America. Canada is one of our fastest growing markets that shows high consumer demand for meal kits. Based on the highly complementary customer bases and leading positions at different price points Chefs Plate is the perfect fit for HelloFresh to form the unrivalled market leader.”
Jamie Shea, Co-Founder & CEO of Chefs Plate Inc., said “Since our launch in 2014, we have been the pioneers in the industry in Canada, following our clear mission to create meaningful human connections through food. HelloFresh shares our passion for food and quality at all levels. The partnership will allow us to further strengthen our offering and to serve more and more Canadians. We will leverage the strength of the most successful global player in the market and at the same time continue to build a sustainable Canadian food system and support the community around us.”
The closing of the transaction is currently expected to occur within the next few weeks. The purchase price is in the middle double-digit million range (CAD).