Misfits Market, which describes itself as an "online grocery platform driven by accessibility, affordability, and sustainability," said yesterday that it is acquiring online grocer Imperfect Foods, which is described as being "at the forefront of eliminating food waste and building a better food system."
Terms of the deal were not disclosed.
According to the announcement, "The planned acquisition will unite both brands to deliver a better, more sustainable grocery experience and put the combined business on track to cross $1 billion in sales and reach profitability by early 2024."
"As a result of the acquisition," the companies said, "Misfits Market will be well positioned to continue building out a supply chain that tackles inefficiency, lowers prices, and continues to fundamentally improve how consumers shop for groceries online. While the brands will continue separate operations in the short term, Misfits Market founder and CEO Abhi Ramesh will serve as CEO of the combined company, with executives from Imperfect Foods joining the Misfits Market leadership team."
"We have a tremendous opportunity to advance the shared mission of both brands, which is nothing less than a fundamental re-imagining of both the grocery category and the broken U.S. food system,” Ramesh said in a prepared statement. “The strengths of the Imperfect Foods organization, from its in-house delivery fleet and robust private label program to its sustainability commitments and innovation, add immediate scale and depth to what we’re building at Misfits Market.”
Imperfect Foods CEO Dan Park noted that "both organizations have made significant progress as individual brands - together we have already rescued nearly 500 million of pounds of food that may otherwise have gone to waste, and driven innovation in a category propped up by antiquated technology and thinking. The combined experience and expertise of this newly merged team will exponentially increase our ability to take on established players in the traditional grocery space.”
Some context about the two companies:
Misfits Market "delivers organic produce, high-quality meats and seafood, plant-based proteins, dairy, bakery, wine, and other grocery items to nearly every zip code in 48 states at up to 40 percent off traditional grocery store prices," while Imperfect Foods "works directly with farmers and producers to rescue, redistribute, and develop goods across multiple grocery categories, including its own private label offerings."
MNB fave Scott Moses of Solomon Partners is serving as exclusive financial advisor to Imperfect Foods.