BOSTON — Oisix ra Daichi Inc., Japan’s largest meal kit and organic food delivery service, has agreed to acquire plant-based meal kit company Purple Carrot. Terms of the transaction 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.
“With Oisix’s platform and access to fresh produce through thousands of farmers and Purple Carrot’s U.S. market penetration, the company is poised for explosive global growth in what experts predict will be a $9 billion global market by 2025,” Oisix said. “The acquisition represents the first global alliance between two health-centric companies in Asia and the United States 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.”
Purple Carrot, launched in October 2014, delivers fresh, pre-portioned ingredients with step-by-step instructions for consumers to cook healthy, plant-based meals at home. Based in Needham, Mass., Purple Carrot works with distribution centers in New Jersey, Chicago and Las Vegas.
“I’m so proud of the rapid growth that Purple Carrot has achieved over the past five years,” said Andy Levitt, founder and chief executive officer of Purple Carrot. “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. 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.”
Founded in June 2000, Oisix generated approximately $580 million in revenues for the year ended March 2019. The Tokyo-based company operates seven distribution centers throughout Japan and works with a network of more than 4,000 farmers.
“Since our inception 18 years ago, our focus has been to provide convenient access to delicious and healthy food that delights our customers,” said Kohey Takashima, founder and c.e.o. of Oisix. “We have been looking for the right opportunity to expand our reach and capabilities and are thrilled to be joining forces with Purple Carrot. 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.”
Following the acquisition, Purple Carrot’s corporate headquarters will remain in Needham, and members of its executive leadership team will maintain their roles in the organization.