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Blue Apron -4.2% as HelloFresh buys rival

Published 03/20/2018, 03:39 PM
© Reuters.  Blue Apron -4.2% as HelloFresh buys rival
APRN
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  • HelloFresh (Private:FRESH) buys rival meal-kit delivery company Green Chef Corporation for an undisclosed amount.
  • HelloFresh says the acquisition will contribute about $15M a quarter to revenue starting in Q2. But the deal will decrease core profit margin by 2 percentage points a quarter this year and will be broadly neutral to margin next year.
  • The acquisition could help HelloFresh achieve its goal of breaking even by the end of 2018.
  • Shares of struggling competitor Blue Apron (NYSE:APRN) drop 4.2% to $2.08.


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