Natural/organic online grocers Door to Door Organics and Relay Foods said Wednesday that they have entered into a definitive merger agreement they said would "deliver an unparalleled online grocery experience to consumers."
The combined company—which plans to operate under a new brand to be disclosed later this year—will leverage each entity's innovative spirit, uncompromising customer service and operational and technological excellence to serve consumers in 63 markets across 18 states and Washington, D.C.
In connection with the merger, the companies also announced the closing of an additional $10 million in equity financing provided by The Arlon Group and existing Relay stockholders.
The companies said the merger brings together innovative players in the online grocery space to create an industry-leading company with broad reach, market-leading technology and uncompromised customer experience. Further, each company has attained B Corp certification by meeting high standards for social, environmental and corporate responsibility.
Founded in 2009 by CEO Zach Buckner, Relay Foods helps customers in Virginia, Maryland, Washington D.C. and North Carolina make healthier food choices that also support their local communities and the environment. By providing a simple, online ordering system and convenient delivery or pickup options, Relay Foods makes shopping for healthy and sustainable groceries easy for busy families.
"I've long been impressed with the success of Relay Foods and their ability to intertwine smart growth and best-in-class technology with an unwavering commitment to local food, sustainability and the simplification of meal planning," Door to Door Organics CEO Chad Arnold said. "Our goal is the same: to inspire, empower and reward consumers to live the healthy, aspirational food lives they envision. By joining forces, we hope to achieve that goal even faster, all while delivering the best online grocery experience possible."
Since its inception 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 personalized, contextual shopping platform offers customers easy ways to plan, shop for and cook healthy meals.
"Door to Door Organics' lean, scaled approach has enabled them to set the industry standard for strategic expansion and product curation, and to grow an incredible network of customers, producers, and suppliers," Buckner said. "The combination of both companies' logistical expertise, amazing employees and back-end technology — fueled by our shared passion for healthy, fresh, local foods — will no doubt benefit all current and future customers."
Door to Door Organics and Relay Foods will maintain offices in Louisville and Charlottesville. In addition, Door to Door Organics and Relay Foods will maintain teams in all markets in which they operate today. Both companies will continue to operate as separate, customer-facing businesses until the integration is complete and the new brand is announced later this year.