APRN - What made Blue Apron stock more than double on Friday?

2023-09-29 10:30:51 ET

Shares of Blue Apron Holdings Inc (NASDAQ: APRN) more than doubled this morning after Wonder Group said it will buy the meal-kit provider for $103 million.

Details of Blue Apron-Wonder Group deal

The all-cash deal values each share of the Nasdaq-listed firm at $13.

Blue Apron has struggled with sharp declines in revenue ever since it went public in 2017. The New York based company had close to $800 million in revenue in its debut year as a listed company which crashed to $458 million only in 2022.

Its customer count has also declined massively from more than a million in 2017 to around a quarter million at writing.

The transaction is expected to complete in the final quarter of this year provided that it satisfied the customary closing conditions.

What’s in it for Wonder Group?

Wonder Group already has sufficient financing on its balance sheet to make this acquisition that is not subject to regulatory approvals.

Blue Apron will offer more colours on its definitive agreement with Wonder Group in its Schedule 14D-9 filing. Linda Findley – its Chief Executive Officer said in a press release today:

Blue Apron brand and products that our customers know and love will stay the same, with more opportunity for product expansion in the future.

Wonder Group wants to become a leading platform for mealtime with the acquisition of the food company. Goldman Sachs & Co. LLC is serving as its exclusive financial advisor on this deal, as per the press release.

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