SAN CLEMENTE, CA - Meal kit delivery platforms can be a tricky business as new models hit the market and old models fall out of fashion. Within this dynamic space, acquisitions are just as exciting as they are within retail. FreshRealm announced its acquisition of the operational assets of Marley Spoon, a subscription-based meal kit provider.
Concurrently, Marley Spoon is acquiring bistroMD, a food as medicine subscription service—this will also join the FreshRealm 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 Chief Executive Officer of FreshRealm. "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."
According to a release, FreshRealm will take over all of Marley Spoon's United States operational and supply chain infrastructure, integrating them into its U.S.-based network.
The $24 million transaction includes Marley Spoon's transfer to FreshRealm of three production and fulfillment facilities in Newark, New Jersey; Tracy, California; and Dallas, Texas. Marley Spoon forecasts the deal to increase margin and reduce cost.
Through these new partnerships, as well as existing relationships with large retailers such as Kroger and Walmart, FreshRealm is uniquely positioned to offer custom-built solutions.
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