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Distributorships Ink Two Dozen M&A Deals in '05



According to our records, based on stories that we've published and additional information from other sources, there were some two dozen deals among foodservice distributorships (or non-food companies involved in foodservice distribution), involving 39 companies. The tally made 2005 another hectic year in terms of mergers and acquisitions.

No. 1 Sysco Corp., Houston, heads the list with five acquisitions, one of which was in the produce segment and the other in meats.

In a mature marketplace, such as foodservice distribution, mergers and acquisitions have been deemed to be the quickest way for a company to increase market share and boost revenues. Industry pundits have said that M&A activity will continue to expand and it will change the competitive landscape of distribution.

"The merger and acquisition activity among foodservice distributorships shows a consolidation that is also happening in corporate America as well as throughout the world. The amount of activity certainly indicates that Sysco is very aggressive in the marketplace with acquisitions of broadliners as well as meat and produce companies," commented George Spilka, president of George Spilka and Associates, a Pittsburgh-based merger and acquisition consulting firm that specializes in middle market, closely-held corporations, and ID columnist.

The list includes, to the best of our tracking, the following transactions:

  • Ben E. Keith Foods, Inc., acquired F&E Foodservice
  • Bunzl acquired redistributor A.W. Mendenhall; Maintenance Depot, Inc.; USF's SOFCO unit; and Retail Resources LP
  • Cash-Wa Distributing Co. acquired HRS Foodservice and Skylark Meats, Inc.
  • Clark National, Inc. bought Regal Foodservice Equipment & Supplies, Inc.
  • Dot Foods acquired Chicago Sweetners, Inc.
  • EVCO Wholesale Food Corp. acquired McGreevy Midwest Meat Co. (the distribution segment only)
  • Evans Foodservice, Inc., bought Otto W. Leibold & Co.
  • Frank Catanzaro Sons and Daughters, Inc., acquired HMI Foodservice and its subsidiary, Cincinnati Gourmet Meats
  • Gibson Food Products mergesd with Nashville Egg, Inc., becoming Choice Food Distributors, Inc.
  • Glover Foods acquires Auten Poultry becoming Glover Auten
  • Thomsen Foodservice acquired Lincoln Packaging
  • Saval Foods Corp., bought Auth Sausage Co.
  • Sysco Corp., acquired Facciola Meat Co., Royalty Foods, Inc., Walker Foods, Inc., and Western Foods
  • Sysco's FreshPoint acquired The Fowler & Huntting Co., Inc.
  • Vistar Corp., bought Roma Food Enterprises, Inc., Vend Source Arizona, and Vend Source's Denver operations.

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