Sole Source Capital has partnered with Individual FoodService (IFS) and will combine the business with Trade Supplies to create non-perishable foodservice distributor and packaging solutions provider in California.
The combined company, which will operate under the IFS brand but also retain the Trade Supplies name, will use its enhanced scale to capitalize on the significant secular growth trends in the restaurant takeout and digital food delivery space, which is one of the fastest growing segments within the approximately $300 billion foodservice distribution market.
The combined company will distribute eco-friendly and custom-branded packaging, paper and plastic disposables, unique catering items, food products, janitorial supplies, healthcare facility products and other foodservice smallwares and equipment to its more than 5,000 weekly customers, which include fast casual, family-owned and major chain restaurants, food processors, caterers, bakeries, schools, large public venues, hospitals, healthcare facilities and foodservice distributors.
The capital infusion will enhance the customer experience at the combined company by investing in technology and new products, which will support its ambitious acquisition strategy.
The combined company will remain headquartered in Bell, California and will be led by the current President and Chief Executive Officer of IFS, Steve Supowitz, who has more than 40 years of experience in the foodservice industry.
Jeremy Shapiro, the current Chief Executive Officer of Trade Supplies, will serve as President and report to Mr. Supowitz. Mr. Shapiro will spearhead the integration of the two companies, assume managerial duties, and oversee business development to further expand the customer base in the Western United States.
Sole Source Capital managing director David Fredston said: “The combination of IFS and Trade Supplies establishes a leader in foodservice distribution throughout California that will offer its customers an increasingly diversified range of products and exceptional service.
“Since partnering with Trade Supplies in June, we’ve employed our firm’s operational expertise to support the company’s progress and leverage the tailwinds in the foodservice distribution sector. We are confident that under Steve’s expert leadership we can maximize the company’s growth prospects.”
“The announcement of today’s partnership between IFS and Trade Supplies is an exciting development that will increase value for our customers, vendors, and employees,” said Mr. Supowitz.
“Complementary product lines and a mutual commitment to customizable offerings will further enhance our ability to serve a diverse retail and wholesale customer base. Sole Source has established itself as the preferred partner in foodservice distribution due to its relevant operational expertise and its network of industry contacts. We have been impressed with the transformational work that has taken place at Trade Supplies under Sole Source’s stewardship over the past few months.”
The transaction was financed with capital from Sole Source Capital. Financial terms of the transaction were not disclosed.
Located in Bell, California, Individual FoodService (IFS) has been owned and operated by the Supowitz family for over 90 years.
With distribution centers comprising nearly 600,000 square feet, IFS and its divisions distribute food, paper, plastic, packaging, janitorial, and smallwares products to independent restaurants, quick service restaurants, healthcare facilities, hospitality establishments, country clubs, schools, universities, government institutions, wholesalers, food processors and foodservice management institutions.
Trade Supplies is a distributor of nonperishable foodservice disposable items, dry-grocery items, packaging solutions, and janitorial supplies across the Western US.
Source: Company Press Release