Arlon leads $25m organic food delivery deal

The food and agri PE company led a Series B round for Door to Door Organics, a Colorado-based organic produce delivery company.

Arlon Group, a food and agriculture private equity firm, has led a $25 million series B round for Door to Door Organics, an organic produce delivery company.

The investment was made from the firm’s $335 million fund which is now invested in nine portfolio companies and over 70 percent deployed. The fund, which is co-sponsored by Dutch banking group Rabobank and Continental Grain Company, closed for the final time in 2011.

Arlon Group also has a Latin America-focused PE fund which closed for the first time on $150 million last year and is still fundraising. It is targeting up to $250 million.

Incumbent investor Greenmont Capital Partners, a US venture capital firm focusing on the lifestyles of health and sustainability, also joined the round. It provided Door to Door with $2 million in series A capital in 2012.

Arlon operates in a niche in food and agri private equity in terms of investment size; it usually targets investments of around $30 million. Another food and agri PE firm, Paine & Partners, targets larger deals sizes, by comparison.

The firm uses a wide definition of food and agriculture when seeking investments across the value chain. It does not invest in primary production but will buy branded food companies.

“We believe online grocery is at an inflection point and is ready for significant growth,” Michelle Brooks, managing principal at Arlon Group, said in a statement. “We looked at several models and found Door to Door more attractive in its geographic focus and its asset-light mode. It’s a more profitable model than others we’ve seen and is capable of going quickly into new markets.”

Brooks will also join the board of Door to Door Organics.


Additional reporting by Louisa Burwood-Taylor