KeHE Distributors on Wednesday said it had agreed to acquire DPI Specialty Foods, a major distributor of specialty food products with three distribution facilities in the Western U.S. offering frozen, refrigerated and dry goods.
DPI, based in Ontario, California, had been owned since 2015 by Arbor Investments, a Chicago-based private equity firm specializing in buying and growing food and beverage companies. Terms of the sale of DPI to KeHE were not disclosed.
“Both DPI and KeHE have built impressive networks, deep industry and category expertise, and value-added services over decades of operation,” said Russ Blake, CEO at DPI Specialty Foods, in a statement. “Combining our complementary strategies allows us to further capitalize on those strengths to offer superior value for the U.S. food industry.”
KeHE said the acquisition would strengthen its fresh food distribution capabilities and grow its product portfolio, and would broaden its customer base.
“Backed by powerful data-driven insights, business intelligence tools, and additional warehouse space to help drive scalable growth, KeHE will add over 1,000 DPI customers across all channels delivering products in a one-truck solution,” the company said.
According to its website, DPI operates distribution facilities in Henderson, Colorado; Tualatin, Oregon, and Ontario, California. It offers delivery to states across the Western U.S. through both its captive fleet of multitemperature tractor trailers and cross-docking capabilities. It supplies gourmet, specialty, organic, natural, gluten-free, local, and ethnic foods to retail chains, independents and foodservice operators.
The company’s 250,000-square-foot Oregon facility carries more than 18,000 items and specializes in imported and domestic cheeses, prepared meats, ethnic foods, baked goods, specialty service items and other products. The facility has an extensive “cut and wrap” operation that supplies retailers with pre-wrapped specialty cheeses and other products.
The 423,000-square-foot California distribution center and headquarters facility focuses on products with special handling requirements, and is the largest distributor of perishable baked goods in the western U.S., as well as the largest distributor of frozen specialty foods in the region.
The 130,000-square-foot Colorado warehouse carries frozen, refrigerated, and shelf-stable foods, as well as nonfood items including vitamins and supplements.
KeHE, meanwhile, supplies fresh, natural, organic, and specialty products to more than 30,000 natural food stores, chain and independent grocery stores, ecommerce retailers, and other specialty products retailers throughout North America. It has distribution centers across the U.S. and Canada, including some that are near DPI’s warehouse locations. It was not immediately clear what impact the acquisition would have on the two company’s existing facilities. KeHE said the two companies would continue to operate independently until the transaction was closed.
“KeHE is dedicated to being a source for good, and this expansion provides an opportunity to deliver enhanced experiences for customers, suppliers, and ultimately, consumers,” said Deb Conklin, president and CEO, KeHE, in a statement.
Braelyn Davis, co-founder and CEO, Planet Based Foods, a Vancouver, British Columbia-based supplier of meat and dairy product alternatives made from hemp, said he expects his company to see benefits from the merger. Planet Based Foods in November announced that it had launched product distribution through both KeHE and DPI, as well as through United Natural Foods Inc.
“The acquisition should streamline distribution and make operations for small businesses like Planet Based Foods more efficient,” Davis told SFA News Daily.
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