On May 22, 2019 US plant-based meal kit company Purple Carrot announced it will be acquired by Tokyo-based Oisix ra daichi Inc., Japan’s largest meal kit and organic food delivery service. With Oisix’s platform and access to fresh produce through thousands of farmers, and Purple Carrot’s US market penetration, the company expects to see explosive global growth in what experts predict will be a $9 billion global market by 2025.
Purple Carrot’s corporate headquarters will remain in Massachusetts and the entire executive leadership team will maintain their roles in the organization. Terms of the deal include an upfront payment of $12.8 million, with an earn-out potential of an additional $17.2 million through 2021, creating a total deal value of up to $30 million.
“I’m so proud of the rapid growth Purple Carrot has achieved during the past five years. 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,” said Andy Levitt, Purple Carrot’s Founder & CEO. “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,” Levitt said.
The acquisition represents the first global alliance between two health-centric companies in Asia and the US who will be able to leverage their food service and plant-based expertise to capitalize on the better-for-you trends that extend across the world.
“Since our inception 18 years ago, our focus has been to provide convenient access to delicious and healthy food that delights our customers. We have been looking for the right opportunity to expand our reach and capabilities and are thrilled to be joining forces with Purple Carrot,” said Kohey Takashima, Founder & CEO of Oisix. “The core values of the two companies are very closely aligned. Furthermore, this acquisition gives us the chance to make a global impact. At the same time, it represents an exciting step in our growth trajectory to expand our operations and bring the first plant-based meal kits to Japan,” Takashima said.
Founded in June 2000, Oisix generated approximately $580 million in revenues with 4.9 percent EBITDA margin for the year ending in March 2019. They operate seven distribution centers throughout Japan, and work with a network of more than 4,000 farmers to provide fresh produce to consumers. Purple Carrot launched in October 2014, delivering fresh, pre-portioned ingredients nationwide with simple step-by-step guidance for people to cook distinctive, healthy, plant-based meals at home.