GS Foods Group, a portfolio company of Highview Capital and A&M Capital Partners, has acquired Diamond Foods, a regional K-12 food distributor.
New Orleans-headquartered Diamond Foods was founded in 1982 by CEO Jerry Sax and specializes in dry and frozen products and services many of the state’s parishes.
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 Diamond Foods follows earlier add-on acquisitions of Louisiana-based Lamm Food Service (September 2023), 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).
“The GS Foods family is dedicated to its mission of simply and sustainably nourishing the specialized needs of our customers and communities,” said Mr. Leer. “This partnership reinforces our commitment to provide the highest-quality food solutions to the K-12 market in the region.”
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.
© 2024 Private Equity Professional | January 25, 2024
