Russell Food Equipment Ltd, a Vancouver provider of food service equipment and supplies (FE&S), has merged with Hendrix Hotel & Restaurant Equipment & Supplies Ltd, a Brockville, Ontario company that operates in the same industry. No financial terms were released for the deal, which created a new business, Russell Hendrix Foodservice Equipment. It will be “positioned as the market leader in the Canadian FE&S distribution industry,” Mark Morris, a partner at U.S. private equity firm Blue Point Capital Partners, said. Blue Point acquired Russell last year. Russell Hendrix’s CEO will be Larry Vander Baaren, who previously led Hendrix.
Blue Point Capital Partners and Russell Food Equipment Close Merger with Hendrix Hotel & Restaurant Equipment & Supplies
SEATTLE, Nov. 21, 2016 (GLOBE NEWSWIRE) — Blue Point Capital Partners announced today the merging of its Blue Point III platform investment, Russell Food Equipment (“Russell”), with Hendrix Hotel & Restaurant Equipment & Supplies (“Hendrix”). Hendrix is a leading distributor of foodservice equipment and supplies (“FE&S”) in Canada, with operations in nine locations nationwide.
The combined company, Russell Hendrix Foodservice Equipment, will serve a footprint roughly doubling the customer base of each independent company. Hendrix’s existing product breadth, reputation, nationwide distribution, diverse customer base, and buying scale are key drivers of the combined company’s business model and consumer network.
“The complementary geographic exposure, product diversification and sales structure is game changing for our current platform investment in Russell,” said Mark Morris, a Partner with Blue Point. “The combined company will be positioned as the market leader in the Canadian FE&S distribution industry, over 4x larger than the next biggest competitor. We expect this merger to be transformative for both companies, as it will position the combined, seasoned management team to considerably expand capabilities and achieve greater growth.”
The Russell Hendrix combination was driven by the natural fit and substantial synergy opportunities. The merger accelerates the combined company’s ongoing expansion strategy and further establishes it as the premier FE&S distributor in six of Canada’s top metro markets.
Larry Vanderbaaren, Chief Executive Officer of Russell Hendrix, added, “For over 75 years, Russell has maintained its leadership status in the FE&S market in Canada due to its comprehensive capabilities. The combination of Russell and Hendrix is a highly strategic, value-enhancing step that brings together the unique strengths of two great companies to deliver best-in-class capabilities. We are thrilled about the opportunities this merger will create for our customers, as well as our combined 600+ employees and business partners.”
Russell Food Equipment (www.russellfood.ca), founded in 1938, is based in Vancouver, British Columbia. It operates out of fourteen distribution and three manufacturing facilities located across Canada. Russell offers an assortment of equipment, supplies, parts and services to more than 20,000 foodservice operators across the country, and serves the restaurant, institutional, government, education, healthcare, hospitality and other foodservice markets. A one-stop solution provider, Russell offers its customers comprehensive hands-on support from planning and design services to aftermarket repair and maintenance.
Hendrix Hotel & Restaurant Equipment (www.hendrixequip.com), founded in 1981, is based in Brockville, Ontario. Since inception, Hendrix has expanded nationwide, with nine locations and three distribution centers, earning a reputation as one of the leading foodservice providers in Canada.
Blue Point Capital Partners (www.bluepointcapital.com) is a private equity firm managing over $800 million in committed capital. With offices in Cleveland, Charlotte, Seattle and Shanghai, Blue Point’s geographical footprint allows it to establish relationships with local and regional entrepreneurs and advisors, while providing the resources of an international firm. The Blue Point group has a 26-year track record of partnering with companies in the lower middle market to facilitate growth and transformative change. It is one of only a few middle market private equity firms with a presence in both the United States and China, which provides a distinct advantage for its portfolio companies. Blue Point typically invests in manufacturing, distribution and service businesses generating between $20 million and $200 million in revenue.
For more information, contact:
BLUE POINT CAPITAL PARTNERS
Blue Point Capital Partners, LLC
1201 3rd Ave. Suite 3090
Seattle, WA 98101
Russell Hendrix Foodservice Equipment
1255 Venables St.
Vancouver, BC V6A 3X6
Photo courtesy of Russell Food Equipment Ltd