Investcorp, a global alternative investment firm, has announced its acquisition of a majority stake in Sunrise Produce, a wholesale produce distribution company based in Southern California. Terms of the deal were not disclosed.
Founded in 1991 by Paul Carone, Sunrise provides customers across the specialty and white tablecloth restaurant and resort, education, healthcare and retail sectors with fresh produce and perishable foods. Sunrise serves a base of more than 2,000 accounts, distributing products from a regional supplier network across the western U.S.
The transaction is expected to increase Sunrise’s future growth and provide opportunities for expansion and future acquisitions.
Sunrise is led by David Sapia, president and CEO, who has more than 35 years of food distribution industry experience. He joined Sunrise in 1998, partnering with founder Paul Carone to continue to build the company, and leading to expansion and revenue growth across sectors among customers.
“We are extremely excited about this pivotal moment for our thriving company,” Sapia said. “Investcorp’s business acumen and resources make them an ideal partner to help fuel our next phase of growth and help us continue to serve our expanding roster of diverse customers with the quality and personal service that they’ve grown accustomed to from Sunrise.”
In addition, the company announced that Carone is retiring. “I am truly grateful for the incredible partnership that Paul and I have built over decades of working together to grow Sunrise Produce. Our team is certain that this new relationship with Investcorp will allow us to continue to build on Sunrise’s exceptional foundation,” Sapia said.
Investcorp has a history of investing across sectors with recent portfolio investments in food logistics and distribution including Fortune Fish & Gourmet, S&S Truck Parts, KSI Auto Parts, Arrowhead Engineered Products and Berlin Packaging.
“Fresh produce distribution is a highly fragmented, $70 billion national market that has consistently shown resiliency through economic cycles,” said Amit Gaind, managing director at Investcorp.
“David and the Sunrise team have built a special, passionate culture that consistently thrills its customers with outstanding service. Their model and disciplined approach has propelled them to exceptional, industry-leading growth. We look forward to our partnership and to helping the company accelerate its growth through geographic expansion and acquisitions.”
For more information, visit investcorp.com.
