Specialty foods supplier KeHE Distributors says it has completed its acquisition of DPI Specialty Foods.
“Combining KeHE and DPI’s long histories of success and preeminent category expertise will enable retailers to respond more quickly to customer demand, offer additional supplier opportunities, and deliver enhanced consumer experiences,” Deb Conklin, president and CEO at KeHE, said in a news release. “Both of our organizations share an obsession for our partners, a deep commitment to our people, a focus on serving others, and financial and operational performance. This transaction represents an opportunity to capitalize on the strengths of both organizations and become an even greater force for good.”
The transaction, the terms of which were not announced, broadens KeHE’s customer base and bolsters its existing warehouse infrastructure, the release said.
The combined capabilities include over 31,000 customers, more than 80,000 SKUs, 6,100 suppliers, and 7 million square feet of warehouse space across all temperature zones in 19 distribution centers, according to the release. DPI and KeHE’s shared dedication to providing fresh and innovative products will further support KeHE’s growing product portfolio, and advance key elements of the organization’s new strategic vision, the release said.
Additionally, DPI suppliers and retailers will gain access to KeHE’s business intelligence tools including the KeHE CONNECT platform, the release said. KeHE’s intuitive technology equips suppliers with sales reporting, business analytics, and data visualization services to help drive scalable success, according to the release.
Participating suppliers using the KeHE CONNECT business Intelligence platform regularly are experiencing more points of distribution and growth than all others, according to the release. KeHE’s category management expertise supports retailers with data, insights, and assortment recommendations that highlight market opportunities and act an as extension of their merchandising functions, the release said.
KeHE and DPI will continue to operate as separate entities while the organizations work to implement an integration plan, the release said.
BMO Capital Markets Corp. served as the exclusive financial advisor to KeHE. Winston & Strawn LLP served as KeHE’s legal counsel, the release said.
