Grocery giant The Kroger Co. has made another big push into the meal kit sector with plans to purchase a Chicago-based supplier.
Cincinnati-based Kroger will pay $200 million for Home Chef, the largest private meal kit company in the U.S., in a pending deal announced May 23. The agreement also includes future earnout payments of up to $500 million over five years, contingent on certain growth milestones.
Home Chef, which enjoyed 150 percent growth in 2017 and revenues of $250 million, will complement Kroger's Prep+Pared meal kit program, which is offered in more than 525 stores.
"Customers want convenience, simplicity and a personalized food experience. Bringing Home Chef's innovative and exciting products and services to Kroger's customers will help make meal planning even easier and mealtime more delicious," says Yael Cosset, Kroger's chief digital officer. "This merger will introduce Kroger's 60 million shoppers to Home Chef and enhance our ship-to-home and subscription capabilities.”