National Convenience Distributors Acquires Colonial Distributing in Florida

National Convenience Distributors, a wholesale distributor based in New York, United States, acquired Colonial Distributing, a wholesale distributor based in Florida, United States, on July 12, 2023.

Transaction Summary

The Facts of the Acquisition

  • Target: Colonial Distributing is a wholesale distributor based in Florida. It serves over 5,000 clients through its distribution center in Tampa and from two cash and carry stores: one in Tampa, one in Pensacola.
  • Acquirer: National Convenience Distributors is a wholesale distributor based in New York. With over 17,000 clients over 13 states, it serves large chains and independent store owners on the east coast, from Maine to Florida.

Our Take on the Acquisition

The acquisition will expand National Convenience Distributors’ (acquirer) capabilities by adding Colonial’s distribution center and 5,000 new clients in Florida. Together, the companies will serve over 22,000 customers. National Convenience Distributors was formed through acquiring then merging five wholesale distributors, so integrating Colonial Distributing into its network should not be a challenge.

The Transaction

Date:July 12, 2023
Purpose: To expand into Florida.
Acquirer’s Statement:Jeff Allen, CEO of National Convenience Distributors – “I’m proud that NCD [National Convenience Distributors] is the leader when it comes to acquiring and integrating businesses in our market,” he said. “With this transaction, NCD not only continues its geographic expansion along the East Coast, it also strategically positions us to acquire additional industry leaders and strengthens our overall business relationships with our customers, vendors and employees.”

Target/Seller: Colonial Distributing

Company Information

Target:Colonial Distributing Inc.
Industry: Wholesale Distribution
Employees:22 (Self-published on LinkedIn)
Locations:Head Office and Distribution Center: 10889 Crossroads Commerce Blvd, Tampa, Florida, United States
Store: 2301 E. McBerry Street, Tampa, Florida, United States
Store: 105 Industrial Blvd, Pensacola, Florida, United States

Product 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
Market Reach:Florida

Financial Information 

Revenue:USD $17.5 million (Unconfirmed Source: Z00minfo)
Revenue per Employee:USD $795,454 (USD $17.5 million / 22 employees = USD $795,454 – estimated based on the self-published number of employees and the revenue from ZoomInfo)

Did You Know?

There are 150,174 convenience stores in the United States, according to NACS, the global trade association for the convenience store and fuel retail industry. And these stores have annual sales of more than USD $906 billion. Roughly 80% of U.S. convenience stores, that is 118,678, sell gas, and the industry is dominated by single-store operators, which account for 60.2% of all stores, or 90,423. Wholesale distributors buy products in bulk and at a discount from manufacturers and resell those products in smaller quantities to other businesses, like convenience stores. 

Target/Seller Overview: Colonial Distributing

Colonial Distributing was established in 1998 by Yasin Saad. Before then, the company was a smaller group known as Kolonial Wholesale. It is now one of the leading convenience-store distributors in Florida. Colonial specializes in grocery items, including drinks, candy, cigarettes, cigars, health and beauty care, and automotive. While servicing over 5,000 retail locations with over 5,000 products, Colonial prides itself on being one of the few distributors in Florida that offers personalized service and great customer service.

Colonial Distributing operates out of its office in Tampa, Florida.
Colonial Distributing serves 5,000 clients in Florida.

Buyer/Acquirer: National Convenience Distributors

Company Information

Buyer:National Convenience Distributors
Industry: Wholesale Distribution
Type:Private with one round of private equity funding
Employees:1,679 (Source: company website)
Investors:Palm Beach Capital: A private equity group focused on the capital needs of private, growth-oriented companies in the lower middle market across the United States. The investment was made in 2014, and the total amount was not disclosed.
Locations:Corporate Headquarters and Distribution Center: 21 Banfi Plaza N, Farmingdale, New York, United States
Distribution Center #2: 15710 Crabbs Branch Way, Rockville, Maryland, United States
Distribution Center #3: 120 W Erie Ave, Philadelphia, Pennsylvania, United States
Distribution Center #4: 705 Meadow St, Chicopee, Massachusetts, United States

Product 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
Market Reach:Connecticut
New Hampshire
New Jersey
New York
Rhode Island
Washington, D.C.

Financial Information 

Revenue:USD $2.9 billion (Source: company website)
Revenue per Employee:USD $1.73 million (USD $2.9 billion / 1,679 employees = USD $1.73 million – estimated based on the number of employees and revenue from the company website)

Buyer/Acquirer Overview: National Convenience Distributors

With its origins dating back to 1898, National Convenience Distributors is the nation’s fourth largest wholesale distributor to the convenience store industry. It supplies candy, snacks, tobacco products, salads, fresh sandwiches, frozen foods, and coffee products to over 17,000 customers throughout 13 northeastern states, from Maine to Virginia. The company was formed through private equity group Palm Beach Capital’s acquisition and mergers of five established distributors: J. Polep Distribution Services, Allen Brothers Wholesale Distribution, Harold Levinson Associates, Wustefeld Candy, and Century Distributors. National Convenience Distributors services its customers from 16 distribution centers using a fleet of over 300 delivery trucks.

National Convenience Distributors was formed through the merger and acquisition of five wholesale distributors.

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