The Kroger Co. acquired Home Chef for approximately $200 million upfront (plus up to $500 million earnout), a transaction completed in June 2018, structured as cash plus contingent earnout.
Home Chef operates in Meal kits / E-commerce, is based in Chicago, Illinois. Kroger acquired Home Chef, the largest private meal kit company in the U.S. and a Chicago-based business that generated about $250 million in revenue in 2017. Kroger purchased 100% of the ownership interest for $197 million net of cash acquired, plus future earnout payments of up to $500 million over five years contingent on achieving in-store and online meal-kit sales milestones. Announced May 23, 2018, the merger closed June 22, 2018 and supported Kroger's Restock Kroger strategy of expanding meal-kit availability and omni-channel offerings.
Accelerate the availability of meal kits, introduce Home Chef products to Kroger's shoppers, and expand ship-to-home and subscription offerings under the Restock Kroger initiative.
We want to be where our customers are and help make cooking at home easier, more accessible and enjoyable.Pat Vihtelic, Founder and Chief Executive Officer, Home Chef
Advisory firms were not disclosed for this transaction.