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Let’s TalkMSG Distributors Rescues Boxed From Bankruptcy
MSG Distributors acquires online wholesaler Boxed following bankruptcy
MSG Distributors, a foodservice distributor based in New York, United States, acquired Boxed, an online wholesaler based in New York, United States, on August 18, 2023. Boxed filed for bankruptcy in April 2023 and has been looking for an acquirer ever since.
Transaction Summary
Our Take on the Acquisition
MSG Distributor (acquirer) has acquired Boxed (target) to expand its customer base by serving businesses and consumers across the United States. At its height, Boxed had more than seven million registered users. Previously, MSG had one warehouse location in New York. Boxed has three distribution locations, allowing MSG to expand its operational reach and create cost efficiencies.
Since Boxed filed for bankruptcy in April 2023 and failed to find a buyer at that time, MSG purchased the company at a much more favorable valuation. MSG Distributors plans to relaunch Boxed in late 2023.
The Facts of the Acquisition
- Targte: Boxed is an online wholesaler of consumables with three distribution locations that serve businesses and consumers. The company has been seeking a buyer since filing for bankruptcy in April 2023.
- Acquirer: MSG Distributors specializes in the distribution of sports nutrition brands and natural foods based in New York, United States. It has been serving gyms, natural health food stores, pharmacies, sports centers, delis, and other retail locations both nationally and locally since 2003.
The Transaction
| Date: | August 18, 2023 |
| Price: | Undisclosed |
| Purpose: | To expand geographically through digital distribution channels. |
| Acquirer’s Statement: | Mark Gadayev, President of MSG Distributors – “This acquisition strengthens our inorganic growth strategy and diversifies our distribution models nationwide. The loyalty and trust that customers and brands have in Boxed is priceless, and we are committed to continue this model of offering bulk-sized products to customers at wholesale prices.” |
Target/Seller: Boxed
Company Information
| Target: | Boxed |
| Website: | boxed.com |
| Founded: | 2013 |
| Industry: | Online Wholesaler |
| Type: | Publicly Listed – Filed for Bankruptcy |
| Employees: | 500 (Source: Pitchbook) |
| Locations: | Head Office: 451 Broadway, New York, United States Regional Office: 1 Waters Park Dr, San Mateo, California, United States Fulfillment Center #1: 501 Gerault Rd, Flower Mound, Texas, United States Fulfillment Center #2: 2970 N Lamb Blvd, Las Vegas, Nevada, United States Fulfillment Center #3: 750 Union Avenue, Union, New Jersey, United States |
Product Information
| Products: | Beverages – Variety of popular energy, sports beverages, and sodas Dairy – Milk and other products derived from milk Deli – Ready-to-eat foods such as cooked meats and prepared salads Frozen Foods – Items frozen to increase shelf life General Grocery – General items for daily use and consumption Snacks – Packaged and processed food in small portions |
| Market Reach: | United States |
Financial Information
| Revenue: | USD $183 million (Unconfirmed source: ZoomInfo) |
| Revenue per Employee: | USD $366,000 (i.e., USD $183 million / 500 employees = USD $366,000 – estimated based on the number of employees from Pitchbook and revenue from ZoomInfo) |
Did You Know?
According to Winsight Grocery Business (WGB), an information services company focused on the food and beverage industry, during the pandemic consumers were stocking up on groceries and essentials because of product shortages and precautions to avoid getting COVID, so they were making fewer trips to the grocery store. However, nowadays, buying in bulk has become a way that many consumers feel they can save money during inflationary times. Roughly 75% of consumers surveyed purchase some categories in bulk, according to Barbara Connors, Vice President of Commercial Insights at 84.51˚, a retail data science, insights, and media company. Connors added that the most common products consumers buy in bulk are paper products, at 55%; household cleaning products, at 35%; shelf staples, at 26%; and personal care items, at 22%.
Target/Seller Overview: Boxed
Boxed is an e-commerce platform selling bulk, high-repeat consumables to consumers and businesses. It offers wholesale products such as groceries, snacks, beverages, household items, and cleaning products. In April 2023, the company filed for Chapter 11 bankruptcy following the collapse of Silicon Valley Bank, in which the company held a majority of its liquid holdings. Boxed has been looking for an acquirer ever since.
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Explore Your Options NowBuyer/Acquirer: MSG Distributors
Company Information
| Buyer: | MSG Distributors |
| Website: | msgdistributors.com |
| Founded: | 2003 |
| Industry: | Foodservice Distributor |
| Type: | Private |
| Employees: | 7 (Self-published on LinkedIn) |
| Locations: | Head Office and Warehouse: 10 Dubon Ct, Suite 2, Farmingdale, New York, United States |
Product Information
| Products: | More than 1,300 Products Natural Foods – food that has undergone minimal processing and contains no preservatives or artificial additives Sports Nutrition – protein bars, sports drinks, and protein powders |
| Market Reach: | United States |
Financial Information
| Revenue: | Up to USD $5.0 million (Unconfirmed source: ZoomInfo) |
| Revenue per Employee: | Up to USD $714,286 (i.e., USD $5.0 million / 7 employees = USD $714,286 – estimated based on the self-published number of employees and revenue from ZoomInfo) |
Buyer/Acquirer Overview: MSG Distributors
MSG Distributors is a foodservice distributor in operation since 2003. Its portfolio includes natural food brands and sports nutrition, including the brands PowerBar, Red Bull, NuGo, Amazing Grass, Long Island Iced Tea, Betty Lou’s, and BPI Sports. It caters to gyms, natural health food stores, pharmacies, sports centers, delis, and other retail locations. Its concentration is nationwide, with direct store delivery and merchandising the shelves of local customers in the five boroughs of New York City and Long Island. MSG operates from an 11,000 sq. feet facility with 16-foot ceilings and professional office space in Farmingdale, NY.
Sources
- Company Profile
- Other Sources
- Unconfirmed Sources
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