Nestle SA’s U.S. division purchased Freshly in a deal that vales the meal-subscription company at $950 million.
The transaction, which closed Friday, includes potential earnouts of as much as $550 million if the business reaches certain growth targets, according to a statement.
“Consumers are embracing e-commerce and eating at home like never before,” Nestle USA Chairman Steve Presley said in the statement. “It’s an evolution brought on by the pandemic but taking hold for the long term.”
Nestle, the owner of Toll House and DiGiorno, bought a roughly 16% stake in Freshly in 2017 to test the food-delivery market. Freshly ships more than one million meals per week to customers in 48 states, with 2020 sales expected to be $430 million, Nestle said.