Meal kit company HelloFresh is assembling its own key components. The company has revealed an agreement to acquire the Australian ready-to-eat meal services company Youfoodz as part of its global expansion.
The A$125 million deal, in the form of a Scheme Implementation Deed, comes at a time when meal services are growing at a quick pace in Australia. Youfoodz offers fresh chef-prepared meals, snacks and drinks through both retail and delivery channels.
“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,” said HelloFresh CEO Dominik Richter. “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.”
Added Lance Giles, CEO of Brisbane-based Youfoodz: “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 growth of our business and enhance our customer offering through new menu offerings, customer initiatives and enriched service levels.”
Under the current terms of the agreement, 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. The arrangement is expected to be finalized in October.
Based in Berlin, with U.S. offices in New York, HelloFresh SE is the world’s leading meal kit company and operates in the United States, the United Kingdom, Germany, The Netherlands, Belgium, Luxembourg, Australia, Austria, Switzerland, Canada, New Zealand, Sweden, France and Denmark. In Q1 2021, HelloFresh delivered 239 million meals and reached close to 7.3 million active customers. The company is No. 75 on The PG 100, Progressive Grocer's 2021 list of the top retailers of food and consumables in North America.