GS Foods Group, a portfolio company of Highview Capital and A&M Capital Partners, has acquired Lamm Food Service.
Lamm is a full-line food distributor of fresh produce, seafood and meats, frozen foods, dry goods, dairy products, non-food and disposables, and cleaning supplies to restaurants, convenience stores, drive-ins, mobile caterers, nursing homes, distributors, schools and correctional facilities across Louisiana and parts of Texas.
Lamm’s products are sourced from numerous Louisiana-based companies as well as from national brands including Hunts, Armor, Tyson, Farmland Foods, Genpak, Foster Farms and Sara Lee. Lamm was founded in 1972 and is headquartered in Lafayette, Louisiana.
“As a family-founded business, we take immense pride in our commitment to delivering exceptional service and high-quality foods to our customers,” said Bruce Mattingly, the CEO of Lamm. “Joining forces with GS Foods, a national food distributor with a rich history and similar values, we believe will enhance our ability to meet the evolving needs of our customers while preserving the legacy we have built.”
Highview and A&M formed GS Foods Group in October 2019 to acquire Gold Star Foods from Castle Harlan, and then immediately merged the company with Good Source Solutions, a portfolio company of Highview.
Today, Ontario, California-headquartered GS Foods is a food distributor serving the education, corrections, non-profit, business and industry, and healthcare sectors. The company operates through its two subsidiaries, Good Source Solutions which distributes center-of-plate items including poultry, meats, pasta, fruits, vegetables, bakery items, beverages, and snacks; and Gold Star Foods which distributes refrigerated, frozen and dry menu items as well as fresh bread and produce. GS Foods has more than 8,500 customers and is led by CEO Sean Leer.
The buy of Lamm by GS Foods follows earlier add-on acquisitions of Missouri-based Graves Foods (July 2022), Connecticut-based Thurston Foods (November 2021), Missouri-based C&C Produce (September 2021), Ohio-based Classic Delight (July 2021), California-based School Lunch Products (June 2021), California-based Fresno Produce (January 2021), and California-based Hayes Distributing (January 2021). In addition to these seven add-ons, GS Foods has opened new distribution centers in Pennsylvania (June 2021), Texas (July 2021), Colorado (July 2020), Oregon (July 2020), and Missouri (October 2021).
“Integrating Lamm Food Service into the GS Foods family is expected to strengthen our operations and expand our footprint in the Southeast,” said Mr. Leer. “By combining our deep industry experience with a like-minded and trusted distributor, GS Foods expects to reach even more communities in the region with high-quality service and products.”
“We believe Lamm’s legacy in the market makes them a natural fit for GS Foods’ portfolio of leading foodservice companies,” added Steve Russell, a managing director at Highview Capital. “We look forward to seeing how this partnership not only expands but strengthens operations in the Southeast.”
Highview Capital, headquartered in Los Angeles, invests from $20 million to $125 million of equity in companies with revenues of $50 million to $500 million and EBITDA of $5 million to $50 million. Highview invests in many sectors and is effectively industry agnostic. The firm sources its capital from a $500 million evergreen fund and is backed by Karlin Asset Management, a Los Angeles-based investment company.
Greenwich, Connecticut-based A&M Capital Partners makes control and significant minority investment of $60 million to $200 million in North American-based companies that have from $20 million to $100 million in EBITDA. Sectors of interest include business services, industrials, manufacturing, food and beverage, healthcare, consumer and retail, government services, financial services and energy services.
© 2023 Private Equity Professional | September 21, 2023
