Home Chef has been acquired by grocery chain Kroger for $200 million.
Chicago-based Home Chef, the third-largest meal kit delivery service in the country and one of Chicago's top consumer startups, will now be available to Kroger shoppers in stores and online. The deal could be worth an additional $500 million over five years if Home Chef hits certain growth milestones, Cincinnati-based Kroger said in a press release.
The acquisition comes as Home Chef's growth has skyrocketed in recent years. Home Chef did $250 million in revenue last year, a 150 percent year-over-year increase. Founded in 2013, Home Chef has raised $57 million in venture capital. Its investors include L Catterton, Shining Capital and Guild Capital.
Home Chef has around 1,000 employees at its headquarters in downtown Chicago and distribution centers in Chicago, Atlanta and San Bernardino.
"As one of the fastest growing meal kit companies in the country, Home Chef is poised for even more explosive growth," Yael Cosset, Kroger's chief digital officer, said in a statement. "We admire their focus on the customer, culture of collaboration, dynamic experimentation, and demonstrated financial success. Home Chef's combination of culinary expertise and a customer data driven decision-making process is right in line with Kroger's vision to serve America through food inspiration and uplift by providing meal solutions for every lifestyle."
Home Chef will remain headquartered in Chicago and operate as a subsidiary of Kroger. It will also maintain its e-commerce business at homechef.com. The purchase is expected to close in the second quarter.
Kroger's Home Chef deal is the latest in a string of meal kit startup exits seen recently. Blue Apron went public last year and has faced a turbulent few months on the public market. German meal kit delivery company HelloFresh also went public in 2017. Plated was acquired by grocery chain Albertsons for $200 million.
