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Food and Beverage M&A Acquisition Alerts

Food and Beverage M&A

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GS Foods Group Acquired LAMM Food Service to Expand in the Southeast U.S.

Food distributor GS Foods Group acquired Louisiana-based LAMM Food Service to extend and better serve its customer base in the Southeast United States.

GS Foods Group is a collection of specialized foodservice distribution companies that serve the education, corrections, non-profit, business, industry, and healthcare foodservice segments. Owned by the affiliates of private equity firms, Highview Capital and A&M Capital Partners, it has acquired LAMM Food Service, a broadline food distributor, on September 15, 2023. GS Foods Group made the acquisition to grow and support its operations in the Southeast United States.

Transaction Summary

Our Take on the Acquisition

GS Foods Group (acquirer) acquired LAMM Food Service (target) to expand its capabilities in the Southeast United States. GS Foods Group already has distribution centers in Louisiana and Texas, which LAMM Food Service also services. GS Foods acquired LAMM to attract and serve more consumers and keep up with consumer demand.

The Facts of the Acquisition

  • Target: LAMM Food Service is a family-operated broadline food distributor based in Louisiana. It has been serving customers in Louisiana and Texas since 1972. Broadline distribution is a term used to define a type of distribution that supplies a diverse range of products in several categories. These categories include food, beverages, equipment, and supplies.
  • Acquirer: GS Foods Group, also a broadline food distributor, is a family of foodservice companies, including Good Source Solutions, Inc., and Gold Star Foods, Inc., collectively servicing the United States. The company is owned by affiliates of private equity firms, Highway Capital and A&M Capital Partners.

The Transaction

Date:September 15, 2023
Price:Undisclosed
Purpose: To expand geographically in the Southeast United States
Acquirer’s Statement:Sean Leer, CEO of GS Foods – “Integrating Lamm Food Service into the GS Foods family is expected to strengthen our operations and expand our footprint in the Southeast. 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.”

Target/Seller: LAMM Food Service

Company Information

Target:LAMM Food Service
Website:lammfoods.com
Founded:1972
Industry: Foodservice Distributor
Type:Private, Family-Owned
Employees:58 (Unconfirmed source: ZoomInfo)
Locations:Head Office and Distribution Center: 3219 N.W. Evangeline Thruway, Lafayette, Louisiana, United States

Product Information 

Services:Distribution – Sourcing food items from producers and selling them to businesses and retail customers.
Logistics – Transporting food items to retail and wholesale buyers.
Warehousing – Storing and handling food items and packing them to meet the order size.
Market Reach:Louisiana
Texas

Financial Information 

Revenue:USD $23.7 million (Unconfirmed source: ZoomInfo)
Revenue per Employee:USD $408,621 (i.e., USD $23.7 million / 58 employees = USD $408,621 – estimated based on the number of employees and revenue from ZoomInfo)

Did You Know?

There are four kinds of foodservice distributors:

  1. Broadline Distributors: Distributors that provide large volumes of a wide range of products across multiple categories and markets them to grocery stores, large retail foodservice chains, and businesses.
  2. Cash-and-Carry Distributors: Distributors that operate warehouses where operators can pick out food products to purchase.
  3. Redistributors: Distributors that buy directly from manufacturers and sell to smaller foodservice operators.
  4. Specialty Distributors: Distributors that specialize in a specific category of products.

Target/Seller Overview: LAMM Food Service

LAMM Foods Service is a broadline food distributor that delivers high-quality food products. It started operating in Lafayette, Louisiana in 1972. It holds products from Tyson Foods, Kraft Heinz, McCain, Koch Foods, and others. It serves restaurants, convenience stores, daycare centers, schools, and correctional facilities in Louisiana and Texas. LAMM carries a wide variety of brand-name products from national manufacturers and supports many local food manufacturers in Louisiana.

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Buyer/Acquirer: GS Foods Group

Company Information

Buyer:GS Foods Group
Website:gsfoodsgroup.com
Founded:1978
Industry: Foodservice Distributor
Type:Private with Private Equity Funding
Employees:450 (Unconfirmed source: Owler)
Investors:Highview Capital – A global private equity firm investing in middle-market businesses based in California, United States. The firm made the investment in 2018.
A&M Capital Partners – Alvarez & Marsal Capital (AMC) focuses on middle-market control transactions in North America with total assets under its management of USD $3.25 billion.
Locations:Head Office: 3115 Melrose Drive, Suite 160, Carlsbad, California, United States

California
Distribution Center #1: 1000 Vaughn Road, Dixon, California, United States
Distribution Center #2: 3781 E. Airport Drive, Ontario, California, United States

Connecticut
Distribution Center #3: 30 Thurston Drive, Wallingford, Connecticut, United States

Idaho
Distribution Center #4: 1750 W Highway 52 Emmett, Idaho, United States

Louisiana
Distribution Center #5: 101 Industrial Parkway Ponchatoula, Louisiana, United States

Missouri
Distribution Center #6: 401 East South 1st St., Wright City, Missouri, United States
Distribution Center #7: 1100 Atlantic Ave., North Kansas City, Missouri, United States
Distribution Center #8: 913 Big Horn Drive, Jefferson City, Missouri, United States

Oklahoma
Distribution Center #9: 100 Eagles Nest Road, Vinita, Oklahoma, United States

Oregon
Distribution Center #10: 16800 SE Everlyn St., Suite 175, Clackamas, Oregon, United States

Pennsylvania
Distribution Center #11: 10320 Fairgrounds Road, Huntingdon, Pennsylvania, United States

South Carolina
Distribution Center #12: 1619 Antioch Church Road, Piedmont, South Carolina, United States

Texas
Distribution Center #13: 10700 Telge Road, Suite B, Houston, Texas, United States

Virginia
Distribution Center #14: 3410 Norfolk Street, Richmond, Virginia, United States

Product Information 

Services:Distribution – Sourcing food items from producers and selling them to businesses and retail customers.
Logistics – Transporting food items to retail and wholesale buyers.
Warehousing – Storing and handling food items and packing them to meet the order size.
Market Reach:United States

Financial Information 

Revenue:USD $270 million (Unconfirmed source: Owler)
Revenue per Employee:USD $600,000 (i.e., USD $270 million / 450 employees = USD $600,000 – estimated based on the number of employees and revenue from Owler)

Buyer/Acquirer Overview: GS Foods Group

GS Foods Group is a family of broadline foodservice distribution companies. It uses its sophisticated network of facilities to provide trusted food distribution and product solutions to specialized foodservice segments, including the education, corrections, non-profit, business, industry, and healthcare sectors. The company services over 8,500 customers nationwide. GS Foods Group is owned by two private equity firms, Highview Capital and A&M Capital Partners.

Previous Acquisitions by GS Foods Group

  • Graves Foods (2022) – A wholesale food distributor based in Missouri, United States.
  • Thurston Foods (2021) – A family-owned foodservice distributor headquartered in Connecticut, United States.
  • C&C Produce (2021) – A specialty produce distributor based in Missouri, United States.
  • Fresno Produce (2021) – A produce distributor headquartered in California, United States.
  • Hayes Distributing (2021) – Provides a wide range of products to schools and vending companies based in California, United States.

Sources

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