Online grocers Door to Door Organics and Relay Foods have announced that they have entered into a definitive merger agreement.
The combined company, which will operate under a new as-yet-unnamed brand, will cover 63 markets across 18 US states and Washington, D.C. The two sides said the deal will create a “single, industry-leading company with broad reach, market-leading technology and uncompromised customer experience”.
Founded in 2009, Relay Foods offers customers in Virginia, Maryland, Washington D.C. and North Carolina healthier food choices that also support their local communities and the environment. Created in 1997, Door to Door Organics has made millions of deliveries of fresh, high-quality, organic, natural and local food directly to homes and businesses throughout 16 states in the West, Midwest and East Coast. The company’s personalised, contextual shopping platform offers customers easy ways to plan, shop for and cook healthy meals.
Both companies will maintain offices in Louisville and Charlottesville, and will also maintain teams in all markets in which they operate today. They will continue to operate as separate, customer-facing businesses until the integration is complete and the new brand is announced later this year.
In connection with the merger, the companies also announced the closing of an additional $10m in equity financing provided by The Arlon Group and existing Relay stockholders.