Blue Apron to be acquired by food delivery firm Wonder Group for $103 mln (updated)

Blue Apron Holdings

29/09/2023 13:08

(Adds background in paragraph 4)
       Sept 29 (Reuters) - Blue Apron  APRN.O  said it would be
acquired by privately held food delivery company Wonder Group in
an all-stock deal for $103 million amid tough competition and
low demand for its meal-kits.
    Its stockholders will receive $13 per share, a 137% premium
to the stock's Thursday closing price of $5.49. Its shares more
than doubled in premarket trading on Friday.
    Blue Apron was the first U.S. meal-kit company to go public
in June 2017, with a valuation of $1.89 billion. 
    But it has been struggling with weak demand for years, with
the company to warn in August that by the end of 2023 its net
revenue and customer count would be lower than a year ago.
    In a bid to raise capital, Blue Apron had offered two
reverse stock splits, including one in June.
    "...The transaction delivers immediate and certain value for
Blue Apron stockholders at a significant premium over recent
trading prices," CEO Linda Findley said.
    The deal is expected to close in the fourth quarter of 2023.
    The Wall Street Journal first reported the deal, citing
executives from both companies.
    

 (Reporting by Juveria Tabassum in Bengaluru; Editing by Varun H
K and Arun Koyyur)
 ((Juveria.Tabassum@thomsonreuters.com;))