HOUSTON (Globe Newswire) — Sysco Corporation (NYSE: SYY), the leading global foodservice distribution company, announced it has completed the acquisition of The Coastal Companies, a leading fresh produce distributor and value-added processer.
The acquisition will operate as part of FreshPoint, Sysco’s specialty produce business, and enables FreshPoint to enhance its service to the important Mid-Atlantic region, strategically diversify its portfolio by adding retail and ready-to-eat capabilities and adds state-of-the-art facilities with capacity for growth.
Founded in 1992 and based in Laurel, MD, The Coastal Companies generates annual revenue of approximately $600 million, and is comprised of three integrated businesses:
- Foodservice Distribution – Coastal Sunbelt Produce a leading foodservice supplier of produce, specialty, fresh-cut and value-added products in the Mid-Atlantic region.
- Retail Distribution – Lancaster Foods is a wholesale supplier of produce and fresh-cut products to retail distribution centers and store locations.
- Value-Added Manufacturing – East Coast Fresh is a regional processor of fresh-cut and value-added products, manufacturing items such as pre-cut fruits and vegetables, salsas, meal preparation solutions and grab-and-go items.
Sysco acquired The Coastal Companies from Continental Grain Company and Rabo Investments (Rabobank) through Arlon Food and Agriculture Partners, LP, their co-sponsored private equity fund. The terms of the agreement were not disclosed.