Meal kit company FreshRealm has acquired the operational assets of rival Marley Spoon for $24 million, the company announced on Tuesday.
FreshRealm will integrate all of Marley Spoon’s U.S. and supply chain infrastructure into its own business network, the company said. That includes Marley Spoon’s three production and fulfillment facilities in Newark, N.J., Tracy, Cali., and Dallas, Texas.
Meanwhile, Marley Spoon is in the process of acquiring bistroMD, a health-focused food as medicine subscription service. Once the transactions are completed, FreshRealm will fulfill orders for all of Marley Spoon’s brands – bistroMD, Martha & Marley Spoon, and Dinnerly.
FreshRealm said the acquisition will allow the company to diversify its offerings and enjoy the benefits of operating at scale at a fraction of the cost.
“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.”
The acquisition comes at a time of major change in the meal kit industry. In November, delivery food hall company Wonder Group closed on its acquisition of meal kit pioneer Blue Apron for $103 million. Blue Apron was the first meal kit company to go public, launching its IPO in June 2017.
Much of Blue Apron’s operational assets were sold for $25 million to FreshRealm in June of 2023, including its fulfillment centers and equipment, the company said at the time of the transaction.
“Blue Apron and FreshRealm also entered into a production and fulfillment agreement with an initial term of 10 years, under which FreshRealm will be the exclusive supplier of Blue Apron’s meal kits,” Blue Apron said in June of 2023.
