Houston, Texas-based Sysco Corporation, a global foodservice distribution company, has completed the acquisition of The Coastal Companies, a fresh produce distributor and value-added processor. 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 and diversify its portfolio by adding retail and ready-to-eat capabilities.
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.
Sysco acquired The Coastal Companies from Continental Grain Company and Rabo Investments through Arlon Food and Agriculture Partners LP, their co-sponsored private equity fund. The terms of the agreement were not disclosed.
Sysco is a global leader in selling, marketing and distributing food products to restaurants, healthcare and educational facilities, lodging establishments and other customers who prepare meals away from home. With more than 58,000 employees, the company operates 343 distribution facilities worldwide and serves more than 650,000 customer locations.
For fiscal 2021 that ended July 3, 2021, the company generated sales of more than $51 billion. Information about its CSR program, including Sysco’s 2021 Corporate Social Responsibility Report, can be found at sysco.com/csr2021report.
Continental Grain Company is a privately-owned global investor, owner and operator of companies with more than 200 years of history across the food and agribusiness spectrum. For more information, visit continentalgrain.com.
Rabo Investments is the investment arm of Rabobank Group, a global food and agribusiness bank.
For more information, visit raboinvestments.com.
