NEW YORK — FreshRealm, LLC is set to acquire the operational infrastructure of Blue Apron Holdings, Inc. for approximately $50 million. The transaction includes two facilities in Linden, NJ and Richmond, Calif.
“The investments in facilities and infrastructure are part of our company's strategic growth, which we announced during our most recent $200m capital raise in July 2022,” said Michael Lippold, founder and chief executive officer of FreshRealm. “FreshRealm is the only fresh meals provider to deliver a national platform that simplifies how fresh ready-to-heat, ready-to-cook and meal kits are delivered through the supply chain and brought to consumers’ tables.”
The increased capacity will allow FreshRealm to continue to address the growing omnichannel retail environment and rising consumer demand for quality, value driven, consistent fresh meals, according to the company. FreshRealm currently partners with retailers nationwide, including Amazon Fresh, Blue Apron, Everytable, Kroger, Publix, Marley Spoon, Meijer and Walmart.
The divestment represents a shift in strategy for Blue Apron to an asset light business model focused on building the company’s brand.
“As we continue to evolve, we believe there is an opportunity to simplify our direct role in the fulfillment of our product, allowing us to focus on growing our brand, our customer base and revenue in the long-term,” said Linda Findley, president and CEO of Blue Apron. “We expect that this will allow us to focus all our efforts on providing even greater innovation and convenience to our customers as we remain at the forefront of culinary trends. We are confident that we can continue to deliver the same product our customers know and love, while increasing efficiency and accelerating our path to profitability.”
Blue Apron expects to be able to accelerate product innovation with faster development and commercialization with the change in strategy, according to the company. Blue Apron also expects to be able to leverage FreshRealm’s expertise, along with its full product capabilities of ready-to-heat and ready-to-cook meals, and other offerings. Over time, this relationship is expected to open additional sales channels for the meal delivery company.