USA – Japanese organic food delivery service, Oisix ra daichi Inc. has announced that it will acquire Purple Carrot, the plant-based meal kit company with operations in the U.S for US$12.8 million.
The transaction combines Tokyo-based Oisix’s platform and access to fresh produce with Purple Carrot’s U.S. market penetration.
According to the companies, the deal provides an opportunity for global growth in the plant-based space, whose market is predicted to reach US$9 billion by 2025.
Purple Carrot’s corporate headquarters will remain in Massachusetts, and the entire executive leadership team will maintain their roles in the organization.
In addition to the upfront payment of US$12.8 million, the parties have agreed to another US$17.2 million due in 2021 if certain unspecified earn out goals are met.
The two companies are set to benefit from combined synergies as well as leverage their food service and plant-based expertise to capitalize on the better-for-you trends that extend across the world.
“I’m so proud of the rapid growth that Purple Carrot has achieved over the past five years,” said Andy Levitt, Purple Carrot’s Founder & CEO.
“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.”
Founded in 2000, Oisix operate seven distribution centers throughout Japan, and work with a network of more than 4,000 farmers to provide fresh produce to consumers.
It generated approximately US$580 million in revenues (160% YoY) with 4.9% EBITDA margin for the year ended March 2019.
Based in Needham, MA Purple Carrot was launched in October 2014, and delivers fresh, pre-portioned ingredients nationwide with simple step-by-step guidance for people to cook distinctive, healthy, plant-based meals at home.