The deal values Freshly at USD 950 million, with potential earnouts up to USD 550 million contingent to the successful growth of the business
Nestlé has acquired Freshly, one of the leading fresh-prepared meal delivery services in the US. The deal values Freshly at $950 million, with potential earnouts up to $550 million contingent on the successful growth of the business. This transaction was signed and closed on October 30, 2020.
Founded in 2015, Freshly delivers a menu of fresh, chef-cooked meals to customers across the country, breaking down the barriers to healthy eating by delivering nutrition and convenience at scale.
This move brings together Nestlé’s deep understanding of what and how people eat at home, and world-class research and development capabilities with Freshly’s highly specialized consumer analytics platform and distribution network to fuel growth opportunities within the Freshly business and across Nestlé’s portfolio.
Steve Presley, Chairman & CEO, Nestle said, “Freshly is an innovative, fast-growing, food-tech startup, and adding them to the portfolio accelerates our ability to capitalize on the new realities in the U.S. food market and further positions Nestlé to win in the future.”
Nestlé purchased an approximately 16% stake in Freshly in 2017 as a strategic move to evaluate and test the burgeoning market. Freshly pioneered the direct-to-consumer prepared meal delivery channel and is known for its use of standard-setting technology and analytics, which will build upon Nestlé’s strong base of innovation. Growing year-over-year since launching in 2015, Freshly is now shipping more than one million meals per week to customers in 48 states. Its 2020 forecasted sales are USD 430 million.
Said Michael Wystrach, CEO, Freshly .”We are extremely excited to expand our relationship with Nestlé. With Nestlé, we will have access to resources, research and development, and years of experience that we can tap into to catapult our growth plans and move closer to our goal of being in every household in America.”
Laurent Freixe, Nestlé CEO Zone Americas added, “With the acquisition of Freshly we are strengthening our position in the U.S. and expanding our ability to deliver a wide variety of delicious food to our consumers when and where they want. Whether purchasing our products from the comfort of their homes, in retail stores or through social commerce, we will continue to provide them with unbeatable convenience, choice and ease of purchase.”