Meal platform FreshRealm said Tuesday it has acquired the operational assets of meal kit service Marley Spoon. FreshRealm will take over Marley Spoon's U.S. operational and supply chain infrastructure, integrating them into its U.S.-based network.
The $24 million transaction includes Marley Spoon's transfer of three production and fulfillment facilities in Newark, New Jersey; Tracy, California; and Dallas. Marley Spoon expects the deal to increase margin and reduce cost.
Concurrently, Marley Spoon is acquiring bistroMD, a food-as-medicine subscription service that provides ready-to-eat meals for health-conscious consumers. This service will also join the FreshRealm platform. After closing, FreshRealm will fulfill all orders for Marley Spoon U.S. customers, including for its bistroMD, Martha & Marley Spoon, and Dinnerly brands.
FreshRealm's platform offers services for direct-to-consumer, brick-and-mortar food retailers, restaurants, and other Fresh Meals providers. Integration with FreshRealm's platform enables partners to diversify their offerings while enjoying the benefits of scale at an affordable rate, according to the meal platform.
"This strategic partnership with Marley Spoon marks a milestone for FreshRealm in shaping the future of the Fresh Meals solutions space and transforming this $900 billion market," said Michael Lippold, founder and CEO of FreshRealm, in a statement. "We are thrilled to empower meal providers like Marley Spoon and bistroMD with what they need to deliver on scale and efficiency. Our partnership will supercharge these established brands' ability to build innovative offerings for their customers and will lead to broader innovation in the Fresh Meals industry."
Through its new partnerships with Marley Spoon and bistroMD, as well as existing relationships, such as those with Amazon Fresh, Blue Apron, Kroger, Publix, and Walmart, the platform is positioned to offer custom-built solutions that address retailer and consumer needs from ready-to-heat and ready-to-cook meals to meal kits, said FreshRealm.
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