Sysco Corp., a global foodservice distribution company, has entered into an agreement to acquire the Laurel-based Coastal Companies, a leading fresh produce distributor and value-added processer, from Continental Grain Company.
Upon completion of the transaction, the acquisition will operate as part of FreshPoint, Sysco’s specialty produce business. The acquisition will create a strong FreshPoint presence in the mid-Atlantic region, provide significant value-added manufacturing capabilities and further diversify Sysco’s produce specialty business.
The Coastal Companies generates annual revenue of approximately $600 million, and is comprised of three integrated businesses:
Foodservice Distribution: Coastal Sunbelt Produce is a 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.
”As Sysco continues to invest in our specialty offerings, The Coastal Companies is an outstanding addition to our family of specialty companies and the acquisition reinforces our Recipe for Growth strategy,” said Greg Bertrand, Sysco’s executive vice president of U.S. foodservice. “This exciting acquisition 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.”
The acquisition is subject to regulatory approval and other customary closing conditions. The terms of the agreement were not disclosed.