Sysco completes acquisition of the Coastal Companies
HOUSTON, Feb. 14, 2022 – Sysco Corporation (NYSE: SYY), the leading global foodservice distribution company, announced today it has completed the acquisition of The Coastal Companies, a leading fresh produce distributor and value-added processer. The acquisition will operate as part of FreshPoint, Sysco’s specialty produce business, and 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 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.
Sysco acquired The Coastal Companies from Continental Grain Company and Rabo Investments (Rabobank) through Arlon Food and Agriculture Partners, LP, their co-sponsored private equity fund. The terms of the agreement were not disclosed.
Sysco is the 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. Its family of products also includes equipment and supplies for the foodservice and hospitality industries. With more than 58,000 associates, 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 our CSR program, including Sysco’s 2021 Corporate Social Responsibility Report, can be found at www.sysco.com/csr2021report.
For more information, visit www.sysco.com or connect with Sysco on Facebook at www.facebook.com/SyscoFoods. For important news and information regarding Sysco, visit the Investor Relations section of the company’s Internet home page at investors.sysco.com, which Sysco plans to use as a primary channel for publishing key information to its investors, some of which may contain material and previously non-public information. In addition, investors should continue to review our news releases and filings with the SEC. It is possible that the information we disclose through any of these channels of distribution could be deemed to be material information.
About Continental Grain
Continental Grain Company (Conti) is a privately-owned global investor, owner, and operator of companies with more than 200 years of history across the food and agribusiness spectrum. We seek to create long-term value by applying deep industry knowledge, capital and talent to businesses ranging from established market leaders to promising innovators. We build platforms that leverage our strategic expertise in food production, processing, and distribution to source proprietary deals, working alongside trusted partners and supporting strong management teams. We bring a long-term ownership mindset, concentrating on investment and operating plans that seek to create enduring value and a sustainable, efficient and nutritional food supply chain. Conti brings people, ideas and resources together to build the businesses that will feed the world. Visit www.continentalgrain.com to learn more.
About Rabo Investments
Rabo Investments is the investment arm of Rabobank Group, a global leading food and agribusiness bank operating on the basis of cooperative principles with the mission to “growing a better world together”. Rabo Investments has invested more than EUR 1.5 billion worldwide in the Food & Agri, Sustainability and Healthcare sectors and aims to provide smart capital in its investment activities, i.e. enabling Rabobank Group’s global network and knowledge base to drive value across its investment portfolio. Rabo Investments is active throughout the company lifecycle, ranging from direct (co-)investments in VC, growth and mature companies and indirect investments through private equity funds. For more information please visit: https://raboinvestments.com/