Headlines

Kroger Buys Home Chef

The meal-kit company acquisition could total $700 million

Published

6 years ago

May 25, 2018

Kroger (Cincinnati) announced that it is in the process of buying Home Chef (Chicago), which is the nation’s largest private meal-kit company.

The initial transaction price for the acquisition is $200 million, and future payments could total $500 million if certain sales goals are met over the next five years. In all, the deal could total $700 million for Kroger.

Once the deal closes, Home Chef will operate as a subsidiary of Kroger and will continue to maintain its e-commerce business. Its meal kits will also be available to Kroger shoppers, both in stores and online.

According to Dayton Daily News, Home Chef experienced 150 percent growth last year and reached $250 million in revenue, which paved the way for Kroger’s interest.

“Customers want convenience, simplicity and a personalized food experience,” said Yael Cosset, Kroger’s Chief Digital Officer. “This merger will introduce Kroger’s 60 million shoppers to Home Chef, enhance our ship-to-home and subscription capabilities, and contribute to Restock Kroger.”

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