FreshRealm will acquire the assets and fulfill customer orders, while the meal kit company will handle front-end operations.
What happened
Meal kit company Marley Spoon is selling its U.S.-based operations assets to fresh meals producer FreshRealm, according to a Jan. 30 announcement.
The $24 million deal includes three fulfillment and production facilities in California, New Jersey and Texas. It's expected to close this month, Marley Spoon said in an earnings release.
Why it matters
The sale is part of a seven-year strategic partnership between the two companies, whereby FreshRealm will become Marley Spoon's exclusive manufacturing partner for U.S. operations.
By selling assets, Marley Spoon aims to reduce costs and increase margins after weathering a decline in revenue and order volume in its U.S. segment last year.
"Evolving to an asset-light model allows us to focus our investments while benefiting from the existing scale of FreshRealm's manufacturing infrastructure," Fabian Siegel, Marley Spoon CEO and founder, said in the earnings release.
This news brief is based on reporting published by Supply Chain Dive on 2024-02-06. The original report is linked below.
Supply Chain Dive
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