Global meal box giant Marley Spoon has agreed to acquire Australian meal-kit company Chefgood for about 21 million US dollars.
Marley Spoon said that the investor would be revealed once the terms of the deal are concluded.
The acquisition would allow the company to reach new customer segments, such as those who are not yet ready to cook but are looking for a healthy meal option.
Marley Spoon’s acquisition of Nestea is part of a strategy to grow organically and inorganically. It’s also part of a plan to put a lid on the company’s share price.
The share price of Marley Spoon has fallen significantly over the past year. It has been trading at less than 70 per cent of its original price.
The deal was made to make sense for both parties.
Marley Spoon are really keen to expand their product offering and reach out to more people. This is through our various cross-promotional activities.
The company is financing the acquisition with debt and equity. It has an unnamed long-only investor who is funding the deal in exchange for 7.9 million shares.
With the acquisition price now settled, Marley Spoon can complete its three-tranche funding and pay its final payment in May 2023.
Marley Spoon said that the company is on track to achieve $26 million of revenue in the current financial year. It also noted that it has found a way to deliver on its promise of delivering “significant” earnings growth.
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