Blue Apron Shares Soar on News of Acquisition Deal - The Messenger
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Blue Apron Shares Soar on News of Acquisition Deal

Food delivery company Wonder Group reached an agreement to acquire Blue Apron at a valuation of $103 million

News of the deal shot Blue Apron stock up by 133% in early morning trading on Friday.Scott Eisen/Getty Images

Shares for meal kit delivery company Blue Apron were up 133% to $12.82 in early morning trading after the company announced it had reached an acquisition agreement with Wonder Group, a food delivery company, on Friday.

The tender offer valued Blue Apron shares at $13, valuing the company at around $103 million. The deal is a 137% premium to the company's closing price of $5.49 on Thursday. This is a massive comedown from the company's IPO-closing valuation of around $2 billion in June 2017, according to CNBC.

Wonder said it planned to continue Blue Apron's current operations.

“Further, the transaction delivers immediate and certain value for Blue Apron stockholders at a significant premium over recent trading prices,” Blue Apron president and CEO Linda Findley said in a statement.

This news comes after Blue Apron transferred its operational system including fulfillment centers and equipment to another meal delivery company, FreshRealm, in June in exchange for $25 million in upfront cash and potentially an additional $25 million if it hits certain milestones.

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