US plant-based meal kit company Purple Carrot is to be acquired by Japanese online supermarket Oisix ra daichi.
Terms of the deal include an upfront payment of $12.8 million, with an earn-out potential of an additional $17.2 million until 2021, creating a total deal value of up to $30 million.
Purple Carrot said that its market penetration combined with Oisix’s platform and access to fresh produce means it is “poised for explosive global growth” in the burgeoning meal kit market.
Launched in 2014, Purple Carrot delivers pre-portioned ingredients across the US with step-by-step guidance for consumers to cook plant-based meals at home. Last year, the firm secured the backing of Fresh Del Monte Produce.
Purple Carrot’s corporate headquarters will remain in Massachusetts and its entire executive leadership team will maintain their roles in the organisation.
Andy Levitt, Purple Carrot founder and CEO, said: “I’m so proud of the rapid growth that Purple Carrot has achieved over the past five years. It’s now a great opportunity to join Oisix, positioning Purple Carrot for continued domestic and future global growth with a highly authentic partner in the wellness category.
“By partnering with this Japanese powerhouse, we’ll bring Purple Carrot plant-based meals to even more consumers and significantly increase the positive impact of our business well into the future. We look forward to working with Oisix to continue the momentum and authenticity of the brand we’ve created.”
Oisix founder and CEO Kohey Takashima added: “Since our inception 18 years ago, our focus has been to provide convenient access to delicious and healthy food that delights our customers. We have been looking for the right opportunity to expand our reach and capabilities, and are thrilled to be joining forces with Purple Carrot.
“The core values of the two companies are very closely aligned. Furthermore, this acquisition gives us the chance to make a global impact. At the same time, it represents an exciting step in our growth trajectory to expand our operations and bring the first plant-based meal kits to Japan.”
Tokyo-based Oisix, which was founded in June 2000 and now operates seven distribution centres in Japan, generated approximately $580 million in revenues for the year ended March 2019.