Foodservice distributor Sysco Corp. (NYSE: SYY) of Houston said it has an agreement to acquire The Coastal Companies, a fresh produce distributor and value-added processer, from Continental Grain Company.
Financial details were not announced. The agreement is subject to regulatory approval and other customary closing conditions.
Once the deal closes, the acquisition will operate as part of FreshPoint, Sysco’s specialty produce business.
The acquisition will create “a strong FreshPoint presence in the Mid-Atlantic region, provide significant value-added manufacturing capabilities and further diversify Sysco’s produce specialty business,” Sysco said.
The Coastal Companies, based in Laurel, Maryland, generates approximately $600 million in annual revenue.
“As Sysco continues to invest in our specialty offerings, The Coastal Companies is an outstanding addition to our family of specialty companies and the acquisition reinforces our Recipe for Growth strategy,” said Greg Bertrand, Sysco’s executive vice president of U.S. foodservice. “This exciting acquisition enables FreshPoint to enhance its service to the important Mid-Atlantic region, strategically diversify its portfolio by adding retail and ready-to-eat capabilities and adds state-of-the-art facilities with capacity for growth.”