Blue Apron: From IPO to Acquisition by Wonder Group
Blue Apron, the meal kit delivery company, is set to be acquired by Marc Lore’s Wonder Group for approximately $100 million. This marks the end of Blue Apron’s tenure as a public company.
In 2015, Blue Apron raised $135 million in Series D funding for its meal kit business before going public in mid-2017 with a valuation of just under $1.9 billion. However, the company’s value had significantly declined before Wonder Group agreed to acquire it for $13 per share in cash. This transaction has an equity value of $103 million, representing a substantial premium compared to its previous worth. It is 77% higher than its “30-day volume weighted average price” and 137% above its value at the end of trading on Thursday.
The Journey from IPO to Acquisition
Let’s take a look back at Blue Apron’s trajectory:
“The company’s impressive growth cannot be overlooked. In 2016, Blue Apron recorded revenue of nearly $800 million, up from $341 million in 2015. During the first quarter of this year, its revenue reached $245 million, surpassing the $172 million generated in the same period last year,” according to GamingIdeology.
Despite initially aiming for an IPO price range of $15 to $17 per share, Blue Apron scaled back its expectations to $10 to $11 later on. Eventually, the company went public at $10 per unit, struggling to maintain that price during its debut day.
