Kroger completes acquisition of meal-kit company

Kroger shoppers will soon be able to buy Home Chef meal kits, in stores and online.

The Kroger Co. on Friday finalized its acquisition of Home Chef, the country's largest private meal kit company. The initial transaction price is $200 million, with future “earnout” payments of up to $500 million over five years. The payments are contingent on achieving certain milestones, including significant growth of in-store and online meal kit sales.

The Chicago-based company Home Chef will operate as a subsidiary of Kroger, maintain its e-commerce business, and assume responsibility for Kroger’s meal solutions portfolio. Home Chef will continue to operate its offices and facilities.

"We're excited to welcome Home Chef to the Kroger family of companies," said Rodney McMullen, Kroger's chairman and CEO. "The merging of our two innovative, data-driven, and customer-focused cultures will allow us to accelerate our reach across America, serving food inspiration and uplift."

The deal, which was announced in May , is not Kroger’s first entry into the fast-growing meal kit market. The grocer’s Prep+Pared meal kits are now available in more than 525 stores. Kroger said the Home Chef meals would complement its own offering.