SpartanNash, Grand Rapids, Mich., acquired Caito Foods Service and Blue Ribbon Transport, both of Indianapolis.

Under the terms of the agreement, SpartanNash will acquire Caito’s produce distribution business, fresh cut fruits and vegetables business, the company’s newly constructed Fresh Kitchen facility and Blue Ribbon’s logistics business.

The acquisition will strengthen SpartanNash’s product offerings by expanding into the freshly prepared centerplate and side dish categories.

Caito Foods Service is a leading supplier of fresh fruit and vegetables to grocery retailers and foodservice distributors across 22 states in the Southeast, Midwest and Eastern United States. Caito and Blue Ribbon currently service customers from facilities in Indiana, Ohio and Florida. Caito also maintains a central fresh cut fruit and vegetable facility in Indianapolis, and is completing construction on its new 118,000-square-foot Fresh Kitchen facility, also in Indianapolis. The $32 million Fresh Kitchen will process, cook and package fresh protein-based foods and complete meals; it is expected to be fully operational in the first quarter of 2017. Caito also offers temperature-controlled distribution and logistics services throughout North America through its affiliate Blue Ribbon Transport.

“We are excited about this opportunity to expand our presence in serving some of the fastest-growing categories in grocery, including fresh produce, value-added fruits and vegetables and protein-based prepared food,” says Dennis Edison, SpartanNash’s CEO and chairman of the board. “Caito Foods Service is a premier distributor with best-in-class food processing facilities, including its new Fresh Kitchen. In addition, Caito’s service area is complementary to our current distribution footprint, and we look forward to serving customers in new areas in addition to enhancing our offerings to existing customers. In short, this acquisition further strengthens our platform and enhances our ability to help our customers serve their consumers, benefiting our associates and the communities we serve, as well as delivering value for shareholders.”

Caito and Blue Ribbon will become part of SpartanNash’s food distribution segment following the close of the transaction. Caito’s senior leadership team, including Caito president Robert Kirch and Blue Ribbon Transport president David Frizzell, will join SpartanNash in their roles and oversee the acquired operations, which will remain based in Indianapolis.

“With our long history and family tradition of processing and distributing fresh, convenient, healthy foods, we are excited and proud to join an organization that shares our passion and commitment to serve customers with the freshest foods,” adds Kirch. “We are looking forward to joining the SpartanNash family to expand and enhance our combined ability to deliver high-quality fresh products efficiently to a greater number of customers across the country.”