HelloFresh To Acquire Australia's Youfoodz
HelloFresh SE has announced that it is to acquire 100% of the share capital in Youfoodz Holdings Limited for A$0.93 per share in cash.
The meal-kit company, which saw a surge in new users in the first quarter of its financial year, has entered into a Scheme Implementation Deed, under which it has proposed the acquisition via HelloFresh or one of its directly or indirectly wholly-owned Australian subsidiaries.
Youfoodz is one of Australia's leading ready-to-eat meal services, offering fresh and healthy chef-prepared meals as well as snacks and drinks through home delivery and retail channels.
HelloFresh also recently announced plans to enter Norway for the first time.
Ready-To-Eat Meal Delivery Services
The intended acquisition in Australia marks another achievement in HelloFresh's strategy to become a leading global direct-to-consumer food solutions group.
It further increases the group's ready-to-eat capabilities and expands its total addressable market.
In Australia, ready-to-eat meal delivery services have been experiencing rapid growth, especially when meals deliver convenience and quality.
After recently launching its value brand EveryPlate in Australia, the intended acquisition of Youfoodz is a natural next step for HelloFresh to further enhance its Australian brand portfolio and product offering.
"We look forward to being able to contribute our expertise to jointly capitalise on a strong growth opportunity," Rutledge added.
Youfoodz will continue to operate under its own brand and become increasingly available to its customers on a recurring basis through a subscription-oriented tech platform.
The intended acquisition brings together HelloFresh's expertise in direct-to-consumer marketing, supply chain management, and technology with Youfoodz' proficiency in developing, manufacturing, and distributing delicious ready-to-eat meals, operations, and strong brand recognition in Australia.
Both companies are unified in their goal of providing Australians with high-quality and affordable fresh meals.
The intended acquisition offers the opportunity for ready-to-eat meals to become an important component of HelloFresh's growth strategy.
The total purchase price for the acquisition is approximately A$ 125 million and will be paid from cash on the balance sheet.
The transaction, subject to customary conditions and approval from shareholders and the Federal Court of Australia, is expected to close in October of this year.