News

Kroger gets into meal kit business with Home Chef acquisition

May 31, 2018

Kroger isn't about to sit idle as meal kit services expand and is spending about $700 million for Home Chef to make sure it's in the game.

Kroger is buying the Chicago company with an initial $200 million and $500 million in "earnout" payments, according to a USA Today report. Home Chef is the biggest private meal kit player in the country. The deal must meet regulatory approval.

The Home Chef meal kits will join Kroger's Prep+Pared kits already on shelves.

"This merger will introduce Kroger's 60 million shoppers to Home Chef, enhance our ship-to-home and subscription capabilities, and contribute to Restock Kroger," Yael Cosset, Kroger's chief digital officer, told USA Today.