Wonder Group is buying meal kit company Blue Apron for about $103 million as the company looks to enhance its offerings.
Wonder Group, which was founded by e-commerce mogul Marc Lore, began with vans that would deliver meals to residences, making the final preparations curbside. But the company faced pushback from some residents concerned about the environmental impact of the idling vans and also dealt with cost concerns. It has since started opening some stores, moving away from the van delivery service.
Blue Apron has built itself into a known name in the meal kit sector, but it's faced increased competition over the years from other meal kit businesses, like Hello Fresh, as well as restaurant and grocery delivery services and at home chefs.
In 2019, two years after its initial public offering, the New York-based company was faced with a potential delisting from the New York Stock Exchange because of its faltering stock price. Blue Apron announced in 2020 it was considering selling itself, as it was losing customers and revenue was declining.
Lore said in a statement the Blue Apron transaction will bolster the company's mealtime app.
"At-home meals play a key role in this vision and have been on our strategic roadmap since the beginning," he said.
Blue Apron shareholders will receive $13 per share for each share that they own.
Wonder Group said Friday that once the transaction is complete, it plans to continue Blue Apron's current operations serving customers nationwide under the Blue Apron brand.
FILE - An example of a home-delivered meal from Blue Apron is displayed, Oct. 6, 2014. Wonder Group announced Friday, Sept. 29, 2023, that it is buying meal kit company Blue Apron for about $103 million as the company looks to enhance its offerings. (AP Photo/Matthew Mead, File)