Sysco Corporation, a global foodservice distribution company, announced Dec. 6 it has entered into an agreement to acquire The Coastal Companies, a fresh produce distributor and value-added processor, from Continental Grain Company. Upon completion of the transaction, the acquisition will operate as part of FreshPoint, Sysco’s specialty produce business.
The acquisition will create a strong FreshPoint presence in the Mid-Atlantic region, provide significant value-added manufacturing capabilities and further diversify Sysco’s produce specialty business.
Founded in 1992 and based in Laurel, Maryland, The Coastal Companies generates annual revenue of approximately $600 million, and is comprised of three integrated businesses:
Coastal Sunbelt Produce: a leading foodservice supplier of produce, specialty, fresh-cut and value-added products in the Mid-Atlantic region.
Lancaster Foods: a wholesale supplier of produce and fresh-cut products to retail distribution centers and store locations.
East Coast Fresh: 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.
”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. foodservice. “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.”
The acquisition is subject to regulatory approval and other customary closing conditions. 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.