Nestlé USA Acquires Meal-Kit Delivery Provider Freshly in $950 Million Deal
October 30 2020 - 3:09PM
Dow Jones News
By Kimberly Chin
Nestlé USA has acquired meal-kit delivery service Freshly Inc.
in a deal valued at $950 million, as the company looks to extend
its reach into consumer homes.
The company behind Coffeemate, DiGiorno and Nestlé Toll House
will also potentially provide up to $550 million in earnouts if
certain growth goals are met, Nestlé said. The deal was completed
Friday.
Nestlé bought a roughly 16% stake in the upstart in 2017 to
"evaluate and test the burgeoning market," in meal-kit preparation
and delivery, the company said. The transaction will help it jump
on the "new realities" taking shape in the U.S. food market
following the coronavirus pandemic, the company said.
"Consumers are embracing e-commerce and eating at home like
never before. It's an evolution brought on by the pandemic but
taking hold for the long term," Nestlé USA Chief Executive and
Chairman Steve Presley said.
Freshly's sales are projected to reach $430 million this year,
Nestlé said.
Freshly, founded in 2015, prepares fresh, chef-cooked meals for
customers through a weekly subscription service.
Write to Kimberly Chin at kimberly.chin@wsj.com
(END) Dow Jones Newswires
October 30, 2020 14:54 ET (18:54 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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