Shares of meal kit company Blue Apron skyrocketed 133% on Friday after the company announced that it agreed to be acquired by Wonder Group for $13 per share.
Wonder Group will continue Blue Apron’s current operations under the Blue Apron brand, with expected new synergies between consumer-facing apps and delivery logistics, the companies said in a joint statement.
AMAZON DIALS UP AI RACE WITH $4B INVESTMENT
"The Blue Apron brand and products that our customers know and love will stay the same, with more opportunity for product expansion in the future," Blue Apron CEO Linda Findley said. "Further, the transaction delivers immediate and certain value for Blue Apron stockholders at a significant premium over recent trading prices."
The purchase was unanimously approved by Blue Apron’s board of directors, while company stockholders will be entitled to receive the $13 in cash per share of class A common stock through a tender offer, representing an equity value of approximately $103 million.
The per-share purchase price reflects a 137% premium to Thursday’s closing price.
COSTCO EXEC SAYS MEMBERSHIP FEE INCREASE QUESTION OF 'WHEN, NOT IF'
"When the opportunity presented itself to unite with Blue Apron, pioneers in the meal kit industry, we knew it would accelerate our strategic position," Wonder Group founder and CEO Marc Lore said.
The transaction is expected to close in the fourth quarter.
