The German-based firm said that the agreement will create “a clear market leader in Canada” with targeted revenues of around CAD$200mn (US$154mn).
"The integration of Chefs Plate is a big leap for our ambitious plans for the Canadian market,” said Ian Brooks, CEO of HelloFresh Canada.
“Together, we are not only the largest player, but we also create a superior offering. In the future, we can serve the widest range of individual consumer needs with two strong brands.”
Under the agreement, the companies say they will be able to create meaningful synergies across marketing, sourcing and operating brands which will help to establish its joint market leadership.
By leveraging HelloFresh’s scale and global market expertise, it will also allow Chefs Plate to enhance its brand offering and accelerate growth.
Jamie Shea, Co-Founder & CEO of Chefs Plate Inc., said he was "delighted" to find a partner like HelloFresh that shares the firm's "passion for food and quality at all levels.”
He added: “The partnership will allow us to leverage the strength of the most successful global player in the market and at the same time continue to build a sustainable Canadian food system and support the community around us."
According to a report by Nielsen, the Canadian meal kit market is still in its infancy.
Only 4% of households have purchased a meal kit in the past 12 months, compared to 25% of US consumers.
However, 80% of Canadian households that have purchased a meal kit have continued to make purchases after their initial trial.
Earlier this year, HelloFresh bought US-based organic meal kit provider Green Chef.