Fresh Prep Wins Court Approval to Acquire Goodfood's Customer Accounts and Assets
Vancouver-based meal-kit company Fresh Prep Foods Inc. has secured court approval to acquire rival Goodfood Market Corp.'s customer accounts, subscriptions, and select operating assets. The deal, expected to close around November 13, will bring approximately 30,000 former Goodfood customers and employees to Fresh Prep.
Vancouver-based meal-kit delivery company Fresh Prep Foods Inc. has received court approval to acquire the customer accounts, subscriptions, and select operating assets of rival Goodfood Market Corp. The transaction is expected to close around November 13.
Once the deal is finalized, Fresh Prep will begin serving approximately 30,000 former Goodfood customers and welcome Goodfood employees into its operations. The acquisition extends Fresh Prep’s cross-Canada footprint and bolsters its business in Quebec.
Montreal-based Goodfood filed for protection under the Companies’ Creditors Arrangement Act in August. The company cited excessive growth during the COVID-19 pandemic followed by a steep decline in sales as reasons for its inability to pay its debt.
Fresh Prep co-founder and co-chief executive Dhruv Sood stated that the company’s annual revenue now tops $100 million. Launched in 2015, Fresh Prep expanded to Alberta in 2021 and currently employs 700 people serving customers across five provinces: British Columbia, Alberta, Saskatchewan, Ontario, and Quebec. The company offers zero-waste meal kits as an alternative to single-use packaging.
This is not Fresh Prep’s first acquisition. The company previously acquired Vancouver’s Peko Produce and Montreal’s Cook It. Fresh Prep is owned by its co-founders alongside investors including SEMCAP Food & Nutrition and Renewal Climate Ventures.