Sysco Announces New Agreement to Purchase The Coastal Companies; Greg Bertrand and John Corso Discuss
HOUSTON, TX - Sysco Corporation is once again ramping up for further growth in the fresh produce space. Recently, the company announced an agreement to acquire The Coastal Companies, a fresh produce distributor and value-added processor, from Continental Grain Company. Upon completion of the transaction, The Coastal Companies will operate as part of FreshPoint, the distributor’s specialty produce business.
“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.”
According to a press release, the fresh-forward acquisition will build a strong FreshPoint presence in the Mid-Atlantic region, provide significant value-added manufacturing capabilities, and further diversify Sysco’s produce specialty business.
The Coastal Companies was founded in 1992, and is based in Laurel, Maryland. With an annual revenue of approximately $600 million, the company’s operation comprises three integrated businesses:
- Foodservice Distribution – Coastal Sunbelt Produce, a foodservice supplier of produce, specialty, fresh-cut, and value-added products in the Mid-Atlantic region
- Retail Distribution – Lancaster Foods, a wholesale supplier of produce and fresh-cut products to retail distribution centers and store locations
- Value-Added Manufacturing – East Coast Fresh, a regional processor of fresh-cut and value-added products, manufacturing items such as pre-cut fruits and vegetables, salsas, meal preparation solutions, and grab-and-go items.
“We are proud of what we have built at The Coastal Companies and excited about our next chapter of growth,” said John Corso, Chief Executive Officer of The Coastal Companies. “Joining FreshPoint will enable us to enhance our offering, expand our capabilities, and provide even greater value for our customers. It will also create new and exciting opportunities for our people.”
The terms of the agreement were not disclosed, and the acquisition is subject to regulatory approval and other customary closing conditions.
As it continues to strengthen its position within the fresh produce industry, AndNowUKnow will continue to report on Sysco’s new strategies for rapid growth.