Meal-kit delivery company Blue Apron is set to be acquired by UK-based direct-to-consumer business Wonder Group for approximately $103 million.
Nasdaq-listed Blue Apron shareholders are being offered $13 per share in a deal expected to close in the fourth quarter of 2023. FreshRealm, a US-based ready-meals supplier, has agreed to sell its 16.5% stake in Blue Apron as part of the transaction.
With the acquisition, Wonder Group plans to continue operating Blue Apron and leverage synergies between consumer-facing apps and delivery logistics to enhance their ability to deliver chef-curated meals with high-quality ingredients to more customers nationwide.
Blue Apron transferred its listing from the New York Stock Exchange to Nasdaq in September. The company, founded in 2012, reported widening net losses in its second-quarter results for the period ending June 30th, totaling $61.9 million compared to a $23.3 million loss in the same period the previous year.
For the year ending December 31st, Blue Apron reported a loss of $109.7 million, an increase from the $88.4 million loss in the previous 12 months. Revenue for the year amounted to $458.5 million, down 3% from the previous year.
Revenue for the second quarter of Blue Apron amounted to $106.2 million, representing a 14% decline. The company’s adjusted EBITDA loss narrowed to $2.6 million from $16.2 million in the previous year.
Upon the announcement of the Wonder Group deal, Blue Apron’s shares surged more than 100% to $12.88.
Blue Apron’s president and CEO, Linda Findley, stated, “The Blue Apron brand and products that our customers know and love will remain unchanged, with opportunities for future product expansion. This transaction offers immediate and certain value for Blue Apron stockholders at a significant premium over recent trading prices.”
Wonder Group, founded by entrepreneur Marc Lore, is a UK-based direct-to-consumer business. Lore described it as a company focused on creating a mealtime super app that offers cuisines from renowned chefs and restaurants. The merger with Blue Apron is expected to accelerate Wonder Group’s strategic position and create synergy.
Lore added, “Uniting with Blue Apron, pioneers in the meal-kit industry, will enable us to further delight customers by expanding the ways they can access and experience Wonder.”
