Marc Lore Eyes Food ‘Super App’ as Wonder Group Buys Blue Apron for $103M
Blue Apron, a fresh meal kit delivery company, will now be backed by the tech billionaire
Meal kit delivery company Blue Apron has entered into a merger agreement to be acquired by Wonder Group, an at-home dining and food delivery company. The deal is expected to close in Q4 of 2023 and is worth around $103 million
Wonder confirms that it will continue to serve customers under the Blue Apron brand, and says the deal is expected to result in increased choice, flexibility and healthy meal options for customers
Wonder raised $350 million last year with a $3.5 billion valuation, according to the Wall Street Journal.
Much like many at-home fitness companies, demand for Blue Apron’s home meal kit service surged during the pandemic, with consumers confined to their kitchens. And, like at-home fitness equipment providers, Blue Apron has struggled in the post-pandemic era as restaurants reopened and the world began to normalize. With declining membership and orders, Blue Apron began enacting cost-savings measures, laying off employees as it attempted to become more nimble.
In a bid to transition to an asset-light model, Blue Apron closed a deal with FreshRealm this past June, receiving approximately $25 million of upfront cash.
The restructuring was discussed on Blue Apron’s August earnings call, where the company confirmed it laid off 20% of its corporate-based employees in exchange for $7 million in cost savings.
Linda Findley, Blue Apron’s president and CEO, says the deal with Wonder Group will enable the meal kit delivery company to continue its “Better Living Through Better Food” mission.
“Wonder and Blue Apron deliver high-quality, chef-curated meals, making this a great match to offer more incredible mealtime experiences,” Findley said. “The Blue Apron brand and products that our customers know and love will stay the same, with more opportunity for product expansion in the future.”
Under the terms of the merger agreement, Blue Apron stockholders will be entitled to receive $13.00 per share of Class A common stock through a tender offer, representing an equity value of around $103 million.
Wonder Group’s founder and CEO Marc Lore intends to create what he calls a “mealtime super app,” with Blue Apron now in the fold, seeing a significant advantage in leading the at-home meal industry. Lore, a serial entrepreneur, is actively reinventing food delivery with a vertically integrated approach bringing next-level culinary delights to members.
“When the opportunity presented itself to unite with Blue Apron, pioneers in the meal kit industry, we knew it would accelerate our strategic position, create immediate opportunities for synergy and most importantly, enable us to further delight customers by expanding the ways you can access and experience Wonder,” he said.
