BERLIN (Reuters) - German meal-kit delivery company HelloFresh HFGG.DE is buying U.S. rival Green Chef Corporation in a move that will boost revenue but will delay efforts to rein in losses.
HelloFresh, which competes with struggling U.S. rival Blue Apron APRN.N, said in a statement that the acquisition would contribute about $15 million a quarter to its revenue from the second quarter.
However, it said the deal will decrease its core profit margin by about 2 percentage points a quarter in 2018 and would be broadly neutral to the margin in 2019. It expects the deal to close shortly but did not say how much it was paying.
HelloFresh, which listed on the Frankfurt stock exchange in November, said in January that it hoped to break even by the end of the year.
Reporting by Emma Thomasson; Editing by David Goodman
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