Kroger has announced a merger agreement with Home Chef, a private meal kit company. The merger agreement will redefine the grocery customer experience, enhance Restock Kroger and accelerate meal kit market growth. It will also introduce Kroger’s 60 million shoppers to Home Chef.
- The initial transaction price of the agreement is USD200 million and future earnout payments of up to USD500 million over a period of five years are based on achieving certain sales goals.
- Home Chef will work as a subsidiary of Kroger, manage its eCommerce business on homechef.com, and presume the responsibility for Kroger's meal solutions after the end of the deal.
The merger transaction is expected to close in Q2 2018, following the achievement of the set targets, including the regulatory approval.
Source: Kroger press release