HKW sells Fresh Direct Produce to PNC Riverarch Capital

HKW has sold Fresh Direct Produce to PNC Riverarch Capital.

HKW has sold Fresh Direct Produce to PNC Riverarch Capital. No financial terms were disclosed. Based in Vancouver, Fresh Direct Produce is a provider of fresh, ethnic, tropical, organic and specialty produce. HKW acquired the business in 2018.

PRESS RELEASE

INDIANAPOLIS–(BUSINESS WIRE)–HKW, a middle-market private equity firm focused on growth-oriented companies, announces the sale of portfolio company Fresh Direct Produce, Ltd. (“Fresh Direct Produce”) to PNC Riverarch Capital. Fresh Direct Produce, headquartered in Vancouver, British Columbia, Canada, is a distributor of fresh, ethnic, tropical, organic, and specialty produce.

“When we partnered with HKW, after an exhaustive search, we were hopeful we had made the right decision. Now, nearly three years later, it has been quite a journey,” said Davis Yung, President, CEO, and co-founder of Fresh Direct Produce. “The collaboration with HKW has surpassed our needs, and we are so thankful for their partnership. With HKW’s resources and support, Fresh Direct Produce was able to reach the next level.”

HKW partnered with Fresh Direct Produce in December 2018, attracted to its talented management team, expansion opportunities, and stable business model in a target sector. Fresh Direct Produce completed three add-on acquisitions during the investment period, including Emperor Specialty Foods based in Richmond, British Columbia, Canada, Islands West Manufacturing, Ltd. based in Victoria, British Columbia, Canada, and Mike & Mike’s based in Woodbridge, Ontario, Canada. Fresh Direct Produce also received its tenth consecutive Canada’s Best Managed Companies Platinum Status recognition.

“HKW is thankful for having had the chance to partner with the Fresh Direct Produce team,” said Kent Robinson, former Chairman of the Board of Directors and Partner at HKW. “During the last three years, Fresh Direct Produce completed and integrated three add-on acquisitions, improved the foundations of the business, and managed through unprecedented challenges through the pandemic. This only happens with an outstanding management team, and it was a pleasure to work with them.”

Truist Securities served as the financial advisor. Taft Stettinius & Hollister LLP served as legal advisor to HKW.

About HKW
HKW is a middle-market private equity firm investing in companies with talented management teams in the US and Canada. HKW targets companies in the Business Services, Health & Wellness, and Technology sectors. Since 1982, HKW has sponsored 64 platform transactions of lower middle-market companies throughout North America, as well as 71 add-on acquisitions. For more information on HKW, please visit hkwinc.co