Blue Apron stock surges 130% on news it is being sold
Blue Apron shares soared more than 130% Friday after the once-hot meal kit delivery service announced it was being acquired.
New York CNN
Blue Apron shares rose more than 130% on Friday, after the meal kit service announced that it would be acquired.
Wonder Group, led by Marc Lore (former Walmart and Jet executive), is buying Blue Apron for $13 per share. This deal values Blue Apron at only $103 million, down from the $2 billion it was valued at six years earlier. The purchase price per share is 137% higher than Thursday's closing value of $5.49.
Blue Apron's fortunes have declined since it went public in 2017. This is due to a variety of issues, including layoffs and the failure to grow their customer base. They are also facing competition from large companies such as Amazon and Kroger. The brief boost that Blue Apron received during the peak of the Covid-19 epidemic did not last.
Wonder stated in a release that the acquisition of Blue Apron 'will create a leading mealtime platform, providing choice, flexibility, and convenience by combining two exceptional brands. It is hoped to create a "mealtime super-app" that includes cuisines from some of the best restaurants and chefs in the world.
The two brands will be combined to 'enhance the ability of both companies to deliver chef-curated, high-quality meals to more customers throughout the country and solve for additional meal times during the week', it said.
After the closing of the transaction, the Blue Apron name (APRN), will be retained. The shares were down 44% in the past year before Friday's announcement.
Blue Apron, a meal delivery service, sold its assets in June to a rival company, FreshRealm. The sale brought the latter 50 million dollars of cash. According to Wonder, this partnership will continue.