Chefs Plate, a Toronto-based meal-kit delivery company, has agreed to combine its Canadian business with that of Germany’s HelloFresh, which operates in the same sector.
HelloFresh will acquire all shares of Chefs Plate for an undisclosed amount, creating a national company with targeted revenue to about $200 million.
Founded in 2014 by CEO Jamie Shea and Patrick Meyer, Chefs Plate delivers kits of locally-sourced farm fresh ingredients and recipes to customers’ homes.
The company’s investors include Acton Capital Partners, BrandProject, Emil Capital Partners and InvestEco Capital Corp, as well as Comerica Bank.
HelloFresh is also venture-backed, counting Insight Venture Partners and Rocket Internet among its investors.
Update: The Globe and Mail reported HelloFresh is acquiring Chefs Plate for between $50 million and $100 million.
Chefs Plate to join the global HelloFresh platform
Combined offering of meal kit pioneers creates the clear market leader in Canada
Agreement combines best of local market passion and global market expertise
Deal aims at strengthening innovation and growth into local online food market
Customers benefit from a distinct meal kit offering for every need
TORONTO, Oct. 17, 2018 /CNW/ – HelloFresh and Chefs Plate Inc. have entered into an agreement to combine their Canadian businesses. For this purpose, HelloFresh will acquire all shares of Chefs Plate. Together, Chefs Plate and HelloFresh will create the clear market leader in Canada with targeted revenues of about CAD 200 million and the largest customer base. As part of the global HelloFresh group, meaningful synergies and an economy of scale will allow Chefs Plate to further enhance its brand positioning and accelerate growth. Canadian customers will benefit from two strong brands serving distinct meal kits for every need.
Local passion and global expertise
Jamie Shea, Co-Founder & CEO of Chefs Plate Inc., said: “We are proud to join forces with the leading global meal kit company HelloFresh. Since our launch in 2014, we have pioneered the meal kit market following our clear mission to create meaningful human connections through food. Now, we have the unique opportunity to further accelerate our plans and create an offering that attracts even more customers. We are more than delighted to have found a partner in HelloFresh that shares our passion for food and quality at all levels. The partnership will allow us to 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.”
Based on the complementary customer bases and leading positions at different pricing points HelloFresh and Chefs Plate plan to strengthen both brands along distinct offerings for the Canadian consumers. By leveraging synergies across marketing, sourcing and operating expenses both brands gain significant means to further accelerate the individual brand strategies and to expand the joint market leadership. “The integration of Chefs Plate is a big leap for our ambitious plans for the Canadian market. Together, we are not only the largest player, but we also create a superior offering. In the future, we can serve the widest range of individual consumer needs with two strong brands,” said Ian Brooks, CEO of HelloFresh Canada. “We are more than happy to have the talented Chefs Plate team on board and are looking forward to working together on many exciting projects.”
HelloFresh is the world’s leading meal kit company and operates in the U.S., the United Kingdom, Germany, the Netherlands, Belgium, Luxembourg, Australia, Austria, Switzerland, Canada and New Zealand. HelloFresh delivered 48.9 million meals to 1.84 million active customers worldwide in the three-month period between April 1, 2018 and June 30, 2018. HelloFresh was founded in Berlin in November 2011 and went public on the Frankfurt Stock Exchange in November 2017. HelloFresh has offices in New York, Berlin, London, Amsterdam, Zurich, Sydney, Toronto and Auckland.
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