United Natural Foods, Inc. (UNFI), Providence, R.I., entered into a definitive agreement to acquire all of the stock of Tony’s Fine Foods, a leading distributor of perishable food products, including a wide array of specialty protein, cheese, deli, foodservice and bakery goods. Founded in 1934 by the Ingoglia family, Tony’s products are sold primarily to retail and specialty grocers, foodservice customers and other distribution companies.
For its fiscal year ended Sept. 30, 2013, Tony’s generated approximately $714 million in net sales. Consummation of the transaction is subject to the satisfaction of customary closing conditions, including compliance with the Hart-Scott-Rodino Antitrust Improvements Act of 1976 as amended, and the transaction is expected to close late in the fourth quarter of fiscal 2014. Upon closing, Tony’s will be operated as a wholly-owned subsidiary of UNFI, and the transaction is expected to be accretive to the company’s earnings in its fiscal year 2015.
“Natural protein and specialty perishable products are a very important part of UNFI’s future. Tony’s Fine Foods will serve as our platform for building out our national perimeter product offering. These fast-growing products will help us further expand market share as we build out our retail store SKU offering,” says Steven Spinner, president and CEO of UNFI. “We welcome Scott and Karl Berger and look forward to working with the entire Tony’s Fine Foods team of professionals as we build upon their more than 80 years of marketing, logistics and distribution excellence to continually deliver exceptional customer service and drive future growth.”
“Tony’s has a consistent track record of providing quality products and innovative logistical solutions to a wide variety of food industry establishments with a commitment to superior customer service,” says Karl Berger, co-president of Tony’s Fine Foods, based in West Sacramento, Calif. “We are thrilled to become part of UNFI, one of the leading natural, organic and specialty distributors in the U.S. and Canada, while maintaining our West coast distribution and logistics network. We believe together, Tony’s and UNFI will deepen our relationships with existing customers and broaden our reach to new customers across all of our markets.”
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