Sysco Corporation announced it has agreed to acquire The Coastal Companies, a leading fresh produce distributor and value-added processer, from Continental Grain Company.
The acquisition will operate as part of FreshPoint, Sysco’s specialty produce business. According to Sysco, the purchase will create a solid FreshPoint presence in the Mid-Atlantic region, provide significant value-added manufacturing capabilities and further diversify Sysco’s produce specialty business.
“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. food service. “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.”
Founded in 1992 and based in Laurel, MD, The Coastal Companies generates annual revenue of approximately $600 million and is comprised of three integrated businesses:
- Foodservice Distribution: Coastal Sunbelt Produce is 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 pre-cut fruits and vegetables, salsas, meal preparation solutions, and grab-and-go items.
“We are proud of what we have built at The Coastal Companies and excited about our next chapter of growth,” said John Corso, CEO of The Coastal Companies. “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.