Sole Source Capital, fresh off its sale earlier this month of Individual FoodService to Kelso & Company, has acquired a majority interest in Worldwide Produce, a distributor of fresh produce, dairy and specialty foods in California and Nevada.
Worldwide Produce (WWP) is one of the largest produce and dairy distributors in Southern California. The company has more than 6,000 SKUs of fresh fruits, vegetables, eggs, dairy, cheese, dry goods, oils, spices, frozen and processed products, flowers and other specialty food products.
WWP operates out of two distribution facilities located in Los Angeles (150,000 sq. ft.) and Las Vegas (17,000 sq. ft.) and has a fleet of over 70 delivery vehicles. The company was founded in 1989 by its current management team and is headquartered in Los Angeles.
“We are thrilled to be partnering with Sole Source as we further solidify our market leadership in the Southern California market and expand into additional geographies,” said Abbas Ghulam, co-founder of WWP. “Sole Source’s wealth of experience investing in founder-owned companies will be invaluable as we expand our company’s footprint while maintaining WWP’s uncompromising commitment to product quality and customer service. I am excited to work closely with the Sole Source team to achieve our strategic objectives.”
SSC plans to use WWP as a platform to acquire other regional foodservice distribution companies and will leverage WPP’s reputation and industry relationships to help execute its growth strategy. “Worldwide Produce represents a compelling opportunity to invest in a premium business with an established reputation for high-quality service,” said David Fredston, managing partner of Sole Source Capital. “We are impressed with WWP’s strong track record, which includes sustained revenue growth through the Great Recession, and look forward to leveraging the company as a platform for consolidation in the space.”
Santa Monica-based Sole Source Capital makes control investments in high precision manufacturing, diversified distribution, and industrial service companies that have at least $50 million of revenue and $5 million of EBITDA. Earlier this month, Sole Source sold Individual FoodService (IFS), distributor of more than 9,000 SKUs of paper, plastic, packaging, food, janitorial, and sanitation products, to Kelso & Company. IFS is headquartered near Los Angeles in Bell, CA and operates a 400,000-square-foot distribution center and maintains a fleet of 80 vehicles capable of offering same-day delivery throughout California.
Sole Source was founded in 2016 and in November 2018 the firm closed its inaugural funds, SSC Partners I LP and SSC Partners I-A LP, at a combined hard cap of $160 million.
© 2019 Private Equity Professional | October 29, 2019