Pittsburgh-based GreenMarketplace.com Inc. has purchased Los Angeles-based EthicalShopper.com, making the combined company the No. 2 natural products Web site.
Founded in 1999, www.GreenMarketplace.com sells natural, non-toxic products for the home and body. www.EthicalShopper.com offers environmentally responsible clothing, bedding and gift items. The firm is a year old.
Terms of the all-stock acquisition were not disclosed.
GreenMarketplace has nine employees and EthicalShopper had five. Only EthicalShopper co-founder Rachel Prishkolnik will join GreenMarketplace as vice president of business development, working in Los Angeles.
GreenMarketplace CEO Josh Knauer, 27, said his firm helped the four others acquire new jobs.
Both sites will continue with the same look. Each will begin selling the others' products. The marketing focuses will be different, catering to each firm's customer niche.
The nation's No. 1 natural products company is Boulder, Colo.-based www.Gaiam.com, which recently purchased wholepeople.com and www.realgoods.com.
Mr. Knauer said there has been industry consolidation and five natural products e-tailers have approached him recently asking to be acquired by GreenMarketplace.
He said EthicalShopper was the best fit because of its strong marketing position, its selection of products and its strict product screening.
Mr. Knauer founded EnviroLink.org in 1991, a grassroots environmental community resource. GreenMarketplace was an offshoot of that group. He still serves on the board of the nonprofit organization.