Batory Foods Acquires Tri-State Companies in Ohio

Batory Foods, a broad-line national distribution company, based in Illinois, United States, acquired Tri-State Companies, headquartered in Ohio, United States, on June 7, 2023. The acquisition will allow Batory Foods to broaden its national supply chain network and gain access to Tri-State’s warehouse, including its cold storage unit. The new location will allow for more streamlined delivery and reduce shipping times to Batory’s customers in the area.

Transaction Summary

The Facts of the Acquisition

Batory Foods Inc. (acquirer) is a distributor in the foodservice sector and is based in Illinois, United States. It has distribution centers in California, Georgia, Illinois, Minnesota, New Jersey, and Texas. In addition to these locations, the company liaises with third-party logistics providers, giving it access to a national distribution network in the United States.

Our Take on the Acquisition

The acquisition of Tri-State Companies (target) will add a warehouse to Batory Foods’ 11 distribution centers. Previously, the company had no presence in Ohio. With the acquisition of Tri-State, Batory Foods can service clients in Ohio and surrounding states. Tri-State’s Ohio distribution center complements Batory’s Foods’ locations in Illinois, Pennsylvania, and New Jersey and will improve the efficiency of its distribution network.

The Transaction

Date:	June 7, 2023
Price:	Undisclosed
Purpose:	Synergies in business model and location, expansion into new geographical areas, and expansion into the production of sweeteners.
Acquirer’s Statement:	Vince Pinneri, president of Batory Foods – “We are thrilled to complete this strategic acquisition – one that will significantly enhance our logistical efficiencies in the Northeast, Midwest, and Southeast and give us greater capacity to provide consistent and reliable customer service and optimized distribution to our valued customers.”
Seller’s Statement:	Lloyd Makstell, owner of Tri-State Companies – the acquisition marks a “historic and exciting milestone” for Tri-State. “Through this acquisition, we look forward to continuing to offer the highest quality ingredients, while together, forming a stronger business, driving further growth and innovation and creating even more value for our employees and customers.”

Target/Seller: Tri-State Companies

Company Information

Target:	Tri-State Companies
Founded:	1994
Industry:	Food Services – Distribution and Warehousing
Type:	Private, family owned
Employees:	7 (Source: Pitchbook)
Locations:	Corporate Office: 425 Walnut Street, Suite 1800, Cincinnati, Ohio, United States Distribution Center: 6147 Western Row Road, Mason, Ohio, United States

Service Information 

Services:

Distribution – Sourcing food items from producers and selling to businesses and retail customers. Logistics – Transportation of food items to retail and wholesale buyers. Warehousing – Storage and handling of food items. Packing to meet order size.

Financial Information 

Revenue:	USD $2.95 Million (Estimated)
Revenue per Employee:	Buyer’s Revenue per Employee of USD $421,750 x Employees of the target (7)

Target/Seller Overview: Tri-State Companies

Family-owned Tri-State Companies began operations in 1961, specializing in selling food ingredients and offering technical formulation assistance in the Cincinnati area. The business expanded into sweeteners in 1973 and by 1994 began offering food ingredient inventory consolidation services to national food companies.

Today the company is a full-service ingredients provider representing industrial suppliers of raw food materials. It sells these ingredients on a brokerage and distribution basis to users in the Northeast, Midwest, and Southeast across 23 states and three countries.

Buyer/Acquirer: Batory Foods Inc.

Company Information

Buyer:	Batory Foods, Inc.
Website:	batoryfoods.com
Type:	Private
Founded:	1979
Employee:	201-500 (Self-published on LinkedIn)
Industry:	Food and Beverage Services – Distribution and Warehousing Food and Beverage Services – Grocers Food and Beverage Services – Sweeteners
Locations:	Corporate Headquarters: 10255 W. Higgins Road, Suite 500, Rosemont, Illinois, United States California Distribution Center #1: 2601 S. Malt Avenue Commerce, California, United States Distribution Center #2: 1447 Mariani Court #101 Tracy, California, United States 3rd Party Logistics #1: 1300 Maritime St., Oakland, California, United States 3rd Party Logistics #2: 3200 E. Washington Blvd, Vernon, California, United States 3rd Party Logistics #3: 19302 S. Laurel Park Road, Rancho Dominguez, California, United States 3rd Party Logistics #4: 6141 Orangethorpe Ave Buena Park, California, United States 3rd Party Logistics #5: 1400 N. MacArthur Dr. Tracy, California, United States Florida 3rd Party Logistics #6: 5060 Great Oak Drive, Lakeland, Florida, United States Georgia Distribution Center #3: 885 Douglas Hill Road, Suite 100, Lithia Springs, Georgia, United States Distribution Center #4: 74 Columbia Dr. Suite G Pooler, Georgia, United States 3rd Party Logistics #7: 737 Douglas Hills Road, Lithia Springs, Georgia, United States 3rd Party Logistics #8: 200 King Mill Road, McDonough, Georgia, United States Idaho 3rd Party Logistics #9: 280 W Highway 30, Burley, Idaho, United States Illinois Distribution Center #5: 2234 W. 43rd Street, Chicago, Illinois, United States Distribution Center #6: 1881 Touhy Ave, Elk Grove Village, Illinois, United States Distribution Center #7: 24860 W. Design Road, Wilmington, Illinois, United States 3rd Party Logistics #10: 450 Central Avenue, University Park, Illinois, United States Minnesota Distribution Center #8: 2650 4th Ave E Suite #140, Shakopee, Minnesota, United States New Jersey Distribution Center #9: 86 Stemmers Lane, Westampton Township, New Jersey, United States 3rd Party Logistics #11: 501 Kentile Road, South Plainfield, New Jersey, United States Pennsylvania Mixing Plant: 4960 Horseshoe Pike, Honey Brook, Pennsylvania, United States 3rd Party Logistics #12: 8129 Nathan Circle Erie, Pennsylvania, United States Texas Distribution Center #10: 3850 Regency Crest Drive, Garland, Texas, United States Distribution Center #11: 594 S. Vermillion Road, Brownsville, Texas, United States 3rd Party Logistics #13: 7750 Dynasty Drive, Dallas, Texas, United States Utah 3rd Party Logistics #14: 6010 Amelia Earhart Drive, Salt Lake City, Utah, United States Wisconsin 3rd Party Logistics #15: 5855 North 94th Street Milwaukee, Wisconsin, United States

Service Information 

Services:

Distribution – Sourcing food items from producers and selling to businesses and retail customers. Logistics – Transportation of food items to retail and wholesale buyers. Warehousing – Storage and handling of food items. Packing to meet order size.

Financial Information 

Revenue:	USD $168.7 Million (Unconfirmed Source: Zoominfo)
Revenue per Employee:	USD $421,750

Buyer/Acquirer Overview: Batory Foods Inc.

Batory Foods began with sugar, its primary product when the company was founded in 1979. Through mergers and partnerships, Batory transformed itself into a broad-line national distributor. Although Batory Foods is still known for its impressive selection of sweeteners, it has expanded to carry everything from dairy powders and proteins to fibers, oils and shortenings, starches and grains to fruit concentrates and savory sauces.

Previous Acquisitions

• Sweetener Solutions (2022) – A company based in Savannah, Georgia, that specializes in custom sweetener formulation, precision blending, and specialty portion packaging.
• DMH Ingredients (2021) – A food and beverage ingredient supplier delivering superior products to the food and pharmaceutical industries based in the Greater Chicago Area.

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Sources

• Company Website
  • batoryfoods.com
• Other Sources
  • pitchbook.com/profiles/company/364943-53#overview
  • foodbev.com/news/batory-foods-acquires-tri-state-companies
  • foodmanufacturing.com/ingredients/news/22863981/batory-foods-acquires-tristate-companies
  • crunchbase.com/organization/batory-foods
  • foodindustryexecutive.com/2023/06/batory-foods-acquires-ohio-based-tri-state-companies-strengthens-northeast-midwest-and-southeast-coverage
  • bakingbusiness.com/articles/59240-batory-foods-acquires-tri-state-companies