American retailing company Kroger has completed its merger with private meal kit company, Home Chef, for an initial transaction price of $200m.
The deal will accelerate the availability of meal kits and strengthen the position of the merged entity.
The merger follows after Home Chef registered 150% growth to $250m in revenue during the financial year 2017 and two profitable quarters.
Kroger chairman and CEO Rodney McMullen said: “We’re excited to welcome Home Chef to The Kroger Family of Companies.
“The merging of our two innovative, data-driven, and customer-focused cultures will allow us to accelerate our reach across America, serving food inspiration and uplift.”
As part of the deal, Kroger will offer Home Chef’s meal kits to customers across its stores and online.
The retailer will also pay future earnout payments of up to $500m over five years for certain milestones such as the growth of in-store and online meal kit sales.
Home Chef founder and CEO Pat Vihtelic said: “We couldn’t be more excited to join the Kroger family and for what this will mean for millions of customers.
“We look forward to bringing Home Chef’s simple, convenient and enjoyable meal solutions to Kroger locations.”
Kroger currently operates 2,800 retail food stores serving more than nine million customers per day.
Established in 2013, Home Chef delivers more than three million meals each month and operates distribution centres in Chicago, Atlanta, and Los Angeles, US.