Sysco acquires two Hawaii food distributors
Sysco, the nation’s largest food service distributor, said Tuesday it had acquired two Hawaii-based food wholesalers and distributors.
Armstrong Produce and Kula Produce are sister companies that operate in Honolulu, Kona, Maui and Kahului. The companies, founded in 1979 and 1987, respectively, have approximately $155 million in combined annual revenue.
Under Sysco’s ownership, the companies will operate as part of FreshPoint, the Houston-based food giant’s specialty produce company. Sysco did not disclose the purchase price.
“Acquiring Armstrong Produce and Kula Produce provides Sysco and FreshPoint with additional direct access to the Hawaiian Islands and increased capacity to expand our produce assortment in the local market,” Greg Bertrand, Sysco’s executive vice president overseeing U.S. foodservice operations, said in a statement.
Executives from the two companies, as well as all current employees, are expected to be retained by Sysco’s FreshPoint. The companies serve restaurants, retailers and hotels across Hawaii.
The deal is the latest in a series of acquisitions expanding Sysco's reach at home and abroad.
In the past two years, the company has acquired Doerle Food Services, a Louisiana distributor, and Kent Frozen Foods, a U.K.-based distributor. In January, Sysco announced plans to acquire Illinois-based Waugh Foods, and in April, it said it purchased J&M Wholesale Meats and Imperio Foods, two California-based Hispanic food distributors.
Sysco earlier this month reported net income of $454 million on revenue of $15.3 billion during its first quarter ended Sept. 28. Profits grew 6.5 percent while revenue grew 0.6 percent from the prior year.
Sysco operates more than 320 distribution facilities worldwide and services more than 650,000 customer locations, including restaurants, hotels, hospitals and schools. The company employs more than 69,000 people globally.