Albertsons, one of the largest U.S. grocers, is acquiring meal kit service Plated, the company's first high-profile move since Amazon bought Whole Foods Market.
Albertsons, which has 2,300 stores across the U.S., announced the deal for the e-commerce company on Wednesday. Talks began several months ago.
"This transaction is the latest example of Albertsons meeting our customers wherever and however they like to shop," said Bob Miller, chairman and CEO of Albertsons.
The deal will give Albertsons access to Plated's technology and data, an easier feat than having to build up that infrastructure itself, Miller said.
It will also help address one of the greatest challenges facing meal-kit companies: the extensive marketing costs to fight for customers and operational costs to deliver fresh food broadly.
Albertsons will be putting Plated meal kits in its stores and eventually help to deliver them with its trucks.
The deal distinguishes Plated from the meal kit industry's largest competitor, Blue Apron.
"If I were Blue Apron, I would feel naked," Plated investor Kevin O'Leary told CNBC's "Fast Money" on Wednesday. "I would feel that I need a partner with stores and I need it now because this is all about getting customers into the cycle of subscriptions.
Blue Apron's stock was up just under 2 percent in after-hours trading, after trading down for the day more than five percent