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Let’s TalkGS 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:
- 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.
- Cash-and-Carry Distributors: Distributors that operate warehouses where operators can pick out food products to purchase.
- Redistributors: Distributors that buy directly from manufacturers and sell to smaller foodservice operators.
- 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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Explore Your Options NowBuyer/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
- Company Profile
- Other Sources
- Unconfirmed Sources
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