KRG Capital Partners has completed the sale of Diversified Foodservice Supply to New Mountain Capital. The transaction closed on February 17th and represents the fourth exit for KRG’s $1.96 billion Fund IV.
KRG Capital Partners acquired Diversified Foodservice Supply (DFS) in December 2010. “The DFS management team has done an excellent job executing our combined vision and achieving a successful outcome,” said Ted Nark, a Managing Director at KRG. “Since our involvement began in late 2010, we have enjoyed a productive and collaborative relationship building a truly unique market-leading distributor.”
Diversified Foodservice Supply is a distributor of maintenance, repair and operations parts, supplies, and equipment to the foodservice industry. The company operates through multiple brands including AllPoints Foodservice Parts & Supplies, Tundra Restaurant Supply, Franklin Machine Products, Mill Hardware, and Restaurant Parts & More. DFS serves over 250,000 foodservice customer locations across multiple end-markets, including restaurants, service agencies, equipment and supplies dealers, and institutions. The company is headquartered in the Chicago suburb of Mt. Prospect and manages more than 100,000 SKUs through seven distribution facilities located across the United States (www.allpointsfps.com).
“Partnering with KRG enhanced our team’s ability to build the leading distributor in the foodservice parts and supplies sector,” said Mike Cate, CEO of DFS. “KRG’s support allowed us to invest in organic and acquisitive growth, which further developed our product and service offering for the end customers and significantly accelerated growth.”
KRG Capital specializes in acquiring and recapitalizing unique and profitable middle-market companies. Since inception, KRG has invested in 46 platform companies and has completed 165 add-on acquisitions for those platforms. Founded in 1996, KRG has $4.3 billion of capital under management and is based in Denver (www.krgcapital.com).
“The DFS management team has built a proven growth platform that delivers significant value for its customers. We wish them continued success with their new partners at New Mountain Capital,” said Bennett Thompson, a Principal at KRG.
“The DFS team has developed a proven growth strategy and we are excited to put additional resources behind this strategy to grow and expand the business,” said Mat Lori, Managing Director at New Mountain Capital. “We look forward to working closely with management over the coming years to support the realization of the Company’s full growth potential by investing behind both organic initiatives and acquisitions.”
New Mountain Capital currently manages private and public equity funds with over $15 billion in aggregate capital commitments. The firm was founded in 1999 and is headquartered in New York (www.newmountaincapital.com).
Robert W. Baird & Co. acted as financial advisor to DFS in connection with the transaction and Hogan Lovells served as legal counsel for DFS.
© 2015 PEPD • Private Equity’s Leading News Magazine • 2-19-15