Global foodservice distributor Sysco Corp., of Houston, has completed the acquisition of The Coastal Companies, a leading fresh produce distributor and value-added processer based in Laurel.
The acquisition will operate as part of FreshPoint, Sysco’s specialty produce business, and enables FreshPoint to enhance its service to the mid-Atlantic region, strategically diversify its portfolio by adding retail and ready-to-eat capabilities and add state-of-the-art facilities with capacity for growth.
Founded in 1992 Coastal 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, their co-sponsored private equity fund. The terms of the agreement were not disclosed.