HelloFresh Buys Batavia's Factor75 To Tighten Grip On U.S. Market

Batavia IL

27 November, 2020

12:33 PM

Description

BATAVIA, IL — Seven years after launching in Batavia, healthy meal-kit maker Factor75 is being purchased by the industry's leading company in a deal that could be worth more than a quarter-billion dollars. Germany-based HelloFresh on Monday announced its acquisition of Factor75, which specializes in prepared meals for people focused on health and wellness. Kane County Hits 30,000 Coronavirus Cases On Eve Of Thanksgiving The purchase could cost HelloFresh up to $277 million, with $177 million to be paid when the deal is closed, according to a news release. That price could rise by up to $100 million if performance-based incentives are reached, the release states. HelloFresh will take over Factor's four production and fulfillment facilities in Burr Ridge, Lyons and Franklin Park. HelloFresh also plans to soon launch a new facility in Aurora that will allow the company to produce more than $500 million worth of prepared meals each year, the release states. Factor75 CEO Mike Apostal said his company is "honored" to join HelloFresh, as well as its family of brands that includes Green Chef and EveryPlate. $5M In Grants To Help Kane County Businesses Cope With Pandemic Despite the merger, Factor75 will continue to operate as a standalone brand "and the Factor experience you know and lover remain the same — no unnecessary changes, only improvements," Apostal said in a statement. HelloFresh's revenues between July and September were more than double its revenues during the same period in 2019, with demand for prepared meal kits soaring amid the coronavirus pandemic, according to a report by the Financial Times. Which Batavia Business Is Best This Year? Nominate Your Favorite Earlier this year, the company stopped taking orders from new customers for about a month to retool its processes to withstand the huge increase in demand, the report states. REGIONAL NEWS: Geneva Shop Closes Doors To Shoppers Due To Coronavirus SurgeGeneva Ditches Proposal To Issue Fines For COVID-19 ViolationsIllinois To Borrow $2B To Cover Revenue Losses Amid PandemicBring Kids Back To School: D303 Parents Want In-Person Learning