Nestle has purchased Freshly in a deal that values the meal delivery platform at $950 million, with possible earnouts of as much as $550 million pursuant to the successful expansion of the business. The deal was inked and closed on Friday (Oct. 30), according to a press release.
“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 Nestle to win in the future,” Nestle USA Chairman and CEO Steve Presley said in the press release.
Freshly, which was established in 2015, provides a collection of chef-cooked, fresh meals to customers across the nation.
In 2017, Nestle bought a roughly 16 percent share of the company as a way to assess and test the market. Nestle said Freshly blazed the trail for the direct-to-consumer meal delivery channel, and that the company is renowned for its infrastructure and analytics.
Currently, Freshly is mailing over one million meals weekly to clients in 48 states. Sales are anticipated to be $430 million for this year.
“With Nestle, 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,” said Freshly CEO Michael Wystrach.
In August, Freshly unveiled its Freshly for Business platform, which is focused on feeding company workforces in any location.
Wystrach said in a past release that the firm has witnessed a spike in demand from firms seeking ways to provide healthy, cost-effective food choices. “We’re all adapting in this current climate, and businesses are shifting their work perks like meals, coffee and snacks to virtual options,” he said. “As access to fresh food becomes increasingly challenging and costly, Freshly for Business is helping to meet evolving needs.”