Houston-based Sysco Corporation has announced it has entered into an agreement to acquire Laurel, Md.-based The Coastal Companies from Continental Grain Company.
Upon completion of the transaction, the acquisition will operate as part of FreshPoint, Sysco’s specialty produce business, according to a news release. The acquisition will build FreshPoint's presence in the Mid-Atlantic region, give significant value-added and diversify Sysco’s produce specialty business, according to the release.
Founded in 1992, 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.
"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,” Greg Bertrand, Sysco’s executive vice president of U.S. foodservice said in the release. “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.”
“We are proud of what we have built at The Coastal Companies and excited about our next chapter of growth,” John Corso, CEO of The Coastal Companies, said in the release. “Joining FreshPoint will enable us to enhance our offering, expand our capabilities, and provide even greater value for our customers. It will also create new and exciting opportunities for our people.”
The acquisition is subject to regulatory approval and other customary closing conditions. The terms of the agreement were not disclosed.