Blue Apron Holdings Inc (NYSE:APRN) shares are trading lower Monday. In a new regulatory filing, the company announced it sold its production and fulfillment operational infrastructure to FreshRealm.
What Happened: In a Form 8-K filing with the SEC, Blue Apron said it entered into definitive agreements with FreshRealm on June 9. Under the agreements, Blue Apron sold its production and fulfillment operational infrastructure and executed a 10-year deal under which FreshRealm will be the exclusive supplier of the company’s meal kits.
FreshRealm paid Blue Apron $28.5 million in cash at closing and is obligated to pay up to $4 million in additional cash considerations if Blue Apron has achieved certain financial and cost-savings milestones as of Sept. 30.
Benchmark analyst Daniel Kurnos maintained Blue Apron with a Buy rating and raised the price target from $5 to $16.
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APRN Price Action: Blue Apron shares were down 15.7% at $7.55 at the time of publication, according to Benzinga Pro.
Photo: courtesy of Blue Apron.
