Marley Spoon agrees to acquire Chefgood

Marley Spoon agrees to acquire Chefgood

SYDNEY, AUSTRALIA: Marley Spoon AG (ASX: MMM), a global subscription-based meal kit provider, has entered into an agreement to acquire Chefgood Pty Ltd, a Melbourne-based ready-to-heat meal provider.

Total purchase price of up to AUD 21.0m (~EUR 13.3m), with additional earn-outs of up to ~AUD 5.6m (~EUR 3.6m) over the next 2.5 years based on achievement of revenue targets.

Chefgood is a ready-to-heat meal provider with manufacturing capabilities in Melbourne. It offers more than 30 meals rotating every week across different subscription plans targeting healthy and weight-conscious consumers, and also offers a small range of add-on items.

Chefgood’s manufacturing capability enables it to deliver high-quality and highly rated meals to a growing customer base.

Adding Chefgood to its existing portfolio of brands (Martha Stewart & Marley Spoon, Marley Spoon, and Dinnerly), would enable Marley Spoon to address more customer segments and meal occasions, thereby expanding its addressable market.

Cross-promotion and cross-selling are expected to increase basket size and engagement with minimal additional customer acquisition costs.

Chefgood is operating at an ~AUD 26m net revenue run-rate (as of the 3-month period September-November 2021, which grew 137% y-o-y) and is generating positive EBITDA and Net Cash Flow. Chefgood’s contribution margin is expected to be modestly above Marley Spoon’s Australian CM levels.

Revenue and cost synergy opportunities have been identified across operations, supply chain, marketing, product development and digital execution.

These savings are expected to begin to be delivered in 2022 and to lead to margin improvements for both businesses in Australia.

Rolf Weber, MD Australia, global Chief Operating Officer and member of the Management Board of Marley Spoon, states that he is looking forward to working with the Chefgood founder and CEO Michelle Sievwright and team to grow the brand and to serve Marley Spoon customers even more of what they want.

“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.”

Michelle Sievwright has a strong focus on the customer experience and food quality.

Michelle is committed to further growing the Chefgood brand over the coming years, noting: “We are all about healthy, tasty, honest food.

Everyone at Chefgood is looking forward to working with Marley Spoon as we share their philosophy of delighting our customers.”

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