Naperville, Illinois-based KeHE Distributors has entered into an agreement to acquire DPI Specialty Foods, a distributor across the western U.S., from food & beverage focused private equity firm Arbor Investments.
Once complete, the complementary strengths of the two entities will provide a nationwide fresh offering and an expanded customer portfolio.
“KeHE is dedicated to being a source for good, and this expansion provides an opportunity to deliver enhanced experiences for customers, suppliers and, ultimately, consumers,” said Deb Conklin, president and CEO.
“This year we’re celebrating seven decades of serving and feeding America, and this acquisition continues to position KeHE as the preferred supply chain partner in North America.”
The transaction advances KeHE’s partner success and growth objectives through two primary strategic initiatives:
- Enhanced capabilities in the fresh market. KeHE’s fresh food portfolio will grow, which will allow retailers to respond more quickly to customer demand.
- Broadened, complementary customer base. Backed by powerful data-driven insights, business intelligence tools, and additional warehouse space to help drive scalable growth, it will add more than 1,000 DPI customers across all channels delivering products in a one-truck solution. KeHE’s and DPI’s experts will continue to offer support to all customers.
“Both DPI and KeHE have built impressive networks, deep industry and category expertise and value-added services over decades of operation,” said Russ Blake, CEO at DPI Specialty Foods.
“Combining our complementary strategies allows us to further capitalize on those strengths to offer superior value for the U.S. food industry.”
The transaction is subject to customary closing conditions and government regulatory approvals. KeHE and DPI will continue to operate independently until the transaction is closed.
BMO Capital Markets Corp. served as the financial advisor to KeHE.
KeHE Distributors is a distributor of fresh, natural, organic and specialty products to more than 30,000 natural food stores, chain and independent grocery stores, e-commerce retailers and other specialty products retailers throughout North America.
For more information about the distributor, visit kehe.com. To learn more about DPI’s network of wholesale specialty food distribution, visit dpispecialtyfoods.com.
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