Rotunda Capital Partners has acquired IF&P Foods, a food service distributor of fruit, vegetables, dairy and floral products.
IF&P Foods was formed in 1997 through the merger of Indianapolis Fruit and Piazza Produce, two produce distribution companies that served the grocery and foodservice industries. IF&P’s group of companies also includes Garden Cut, a fresh cut processing company, and food service produce distributors, Circle City Produce and Papania Produce. IF&P provides fresh and packaged produce varieties, as well as partially prepared meal components, to approximately 7,500 customers throughout the Midwest, including grocery stores, restaurants, schools and food management companies.
IF&P has a fleet of over 340 refrigerated trucks that service 14 states from five facilities totaling over 225,000-square-feet of warehouse space. The company is headquartered in Indianapolis (www.indyfruit.com) (www.piazzaproduce.com) (www.gardencut.com) (www.circlecityproduce.com) and (www.papaniasinc.com).
Rotunda Capital acquired IF&P Foods from Mike and Chris Mascari, and Danny and Joe Corsaro. The Mascari family founded Indianapolis Fruit in 1946. “We’ve been looking for a platform company in the produce distribution sector for quite some time, and IF&P is an exciting company with tremendous growth prospects,” said Dan Lipson, a Partner at Rotunda Capital. “Their team has built a leading company in the category, and they are well-positioned to serve their customers’ growing demand for high quality product and services. Combined with our distribution expertise, there’s a great opportunity to expand IF&P’s reach and offerings and provide a new platform for growth.”
Rotunda Capital invests in businesses with enterprise values of $15 million to $100 million. Sectors of interest include logistics, value-added distribution, specialty finance, and business services. Since founding in 2009, Rotunda has completed ten platform investments and realized three exits. The firm is headquartered in Bethesda, MD with an office in Evanston, IL (www.rotundacapital.com).
“Our investment in IF&P is in line with Rotunda’s proven approach of acquiring family and founder-owned distribution companies and partnering with strong management to expand on their existing value proposition,” added Corey Whisner, a Partner at Rotunda Capital. “What IF&P has built over the better part of a century is truly impressive, and we’re committed to helping them achieve new heights through both organic growth as well as potential acquisitions to expand their offerings.”
According to Rotunda, many industry trends are driving increased consumer demand for produce. A more informed consumer is demanding fresh and healthy eating options, either through purchase at retail or through meals ordered at restaurants. That trend is driving expansion of produce offerings at grocery and growing the number of independent restaurants to meet the evolving palates of their patrons.
“Rotunda’s significant distribution expertise with industries undergoing strong growth trends and their focus on partnership with existing management and workforce was very appealing to us as we look to continue our market leadership,” said Greg Corsaro, CEO of IF&P. “Our mission remains unchanged – to deliver on the promise to our customers and employees to help them succeed and be the best they can be, and Rotunda’s investment and partnership will help maintain that pledge as we take our business to the next level.”
Kayne Anderson was the lead agent for a $34 million senior secured credit facility to support this transaction. In addition, both Kayne Anderson and Patriot Capital provided subordinated debt and made equity co-investments.
© 2017 Private Equity Professional | September 7, 2017
