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- Marley Spoon (MMM) is looking to acquire Melbourne-based ready-to-heat meal provider Chefgood for up to $21 million
- The company says the acquisition is a strategic addition to its portfolio and will give it the opportunity to expand its addressable market
- Chefgood founder and CEO Michelle Sievwright says Chefgood is looking forward to working with Marley Spoon as the companies share the same philosophy
- The transaction is expected to be completed in January 2022
- Company shares have been trading up 17.3 per cent to trade at 81.5 cents
Marley Spoon (MMM) has entered into an agreement to acquire Melbourne-based Chefgood.
Marley is acquiring 100 per cent of the share capital of Chefgood for up to $21 million, with additional earn-outs of up to $5.6 million over the next 2.5 years based on achieving certain revenue targets.
The transaction will be funded by an $8 million equity placement with a long-term oriented European institutional investor at $1.00 per CDI, a 43 per cent premium to the previous close, and an $11 million extension to the group’s existing debt facility with Runway Growth Capital.
Chefgood is a ready-to-heat meal provider that offers more than 30 meals rotating every week across different subscription plans for healthy and weight-conscious consumers.
Marley Spoon believes the purchase is a strategic addition to its portfolio, which currently consists of Martha Stewart & Marley Spoon, Marley Spoon, and Dinnerly. The acquisition also gives MMM the chance to expand its addressable market.
CEO Australia and Global COO Rolf Weber said he was looking forward to working with the Chefgood founder and CEO Michelle Sievwright and team to grow the brand.
“We are very excited to be partnering with Michelle and the Chefgood team since we share the same vision of making our customers’ lives easier with easy, tasty, and high-quality meal solutions,” he said.
The purchase price will be paid to Chefgood over three tranches between January 2022, in September 2022 and May 2023 based on FY22 revenue.
The acquisition is expected to close in January 2022.
Company shares were up 17.3 per cent to trade at 81.5 cents at 1:18 pm AEDT.
