Forestwood Farm, a family-owned produce distributor based in Birmingham, AL, has been acquired by Chicago-based investment firm Red Arts Capital. With the acquisition, Red Arts continues to expand its produce distribution footprint in the Southeastern U.S. as this represents the firm’s second investment in the sector within the market.

Forestwood joins Freshway Foods — a fresh-cut processor based in Sidney, OH, serving customers across the Eastern U.S. — in Red Arts’ produce processing and logistics portfolio. Red Arts anticipates that together, Forestwood and Freshway build a complementary platform that broadens the company’s geographic reach and enhances its ability to serve a diverse customer base across the fresh food supply.

Forestwood’s roots date back to 1970 when Everett Scott Sr. and his wife Hazel started selling eggs out of their home. In an Oct. 13 news release, Red Arts shared that the company has grown into one of the largest produce distributors in Alabama, serving restaurants, schools and military facilities across the Southeastern U.S.

Forestwood operates out of three locations in Birmingham, AL, Huntsville, AL and Jackson, TN under the leadership of second-generation owners Randy Scott, who will remain President, and Everett Scott Jr., who will continue to serve the company in a senior advisory capacity.

“The Forestwood team has built a remarkable business grounded in service, reliability and community,” said Nick Antoine, Co-CEO and Managing Partner at Red Arts Capital. “Their strong market position and values-driven leadership align perfectly with our investment approach. We’re excited to bring them into the Red Arts family as we accelerate our growth across the region.”

“This investment allows us to continue serving our customers with care, consistency and pride, while gaining the resources to strengthen our operations and expand our reach,” Scott added. “Red Arts understands what makes family businesses like ours special. Their support will help ensure that Forestwood continues to grow for the next generation.”