Sysco Finalizes Acquisition of The Coastal Companies
HOUSTON, TX - As part of a continuous, long-term strategy, Sysco Corporation has made key efforts to bolster its specialty produce business with several tactical acquisitions. In December 2021, the distributor revealed plans to acquire The Coastal Companies, a leading fresh produce distributor and value-added processor. This acquisition was recently finalized, bringing critical new benefits to Sysco’s operations.
Laurel, Maryland-based The Coastal Companies was founded in 1992 and generates annual revenue of approximately $600 million. The company is comprised of three integrated businesses, which include:
- Foodservice Distribution – Coastal Sunbelt Produce
- Retail Distribution – Lancaster Foods
- Value-Added Manufacturing – East Coast Fresh
According to a press release, this acquisition will operate as part of FreshPoint, allowing the business to enhance its service in the Mid-Atlantic region as well as diversify its portfolio with added retail and ready-to-eat capabilities and state-of-the-art facilities with capacity for growth.
Sysco acquired the company from Continental Grain Company and Rabo Investments (Rabobank) through Arlon Food and Agriculture Partners, LP, itss co-sponsored private equity fund. The terms of the agreement were not disclosed.
As this long-term strategy brings new opportunities for the distributor, keep reading ANUK for the latest updates.