New Mountain Capital has acquired Diversified Foodservice Supply Inc from KRG Capital Partners. No financial terms were disclosed. Robert W. Baird & Co. was financial advisor to DFS on the transaction. Headquartered in Mount Prospect, Illinois, DFS is a provider of maintenance, repair and operations parts, supplies and equipment to the foodservice industry.
DENVER–(BUSINESS WIRE)–KRG Capital Partners (KRG), a Denver-based private equity firm, completed its sale of Diversified Foodservice Supply, Inc. (DFS), a leading distributor of maintenance, repair, and operations parts, supplies, and equipment to the U.S. foodservice industry, to New Mountain Capital. The transaction closed on February 17, 2015 and the sale represents the fourth successful full exit in KRG’s $1.96 billion Fund IV.
“The DFS management team has done an excellent job executing our combined vision and achieving a successful outcome,” said Ted Nark, a Managing Director at KRG. “Since our involvement began in late 2010, we have enjoyed a productive and collaborative relationship building a truly unique market-leading distributor.” Bennett Thompson, a Principal at KRG, added, “The DFS management team has built a proven growth platform that delivers significant value for its customers. We wish them continued success with their new partners.”
“Partnering with KRG enhanced our team’s ability to build the leading distributor in the foodservice parts and supplies sector,” said Mike Cate, CEO of DFS. “KRG’s support allowed us to invest in organic and acquisitive growth, which further developed our product and service offering for the end customers and significantly accelerated growth.”
Robert W. Baird & Co. acted as financial advisor to DFS in connection with the transaction and Hogan Lovells served as legal counsel for DFS.
About Diversified Foodservice Supply, Inc.: Diversified Foodservice Supply, Inc. is a leading distributor of maintenance, repair and operations parts, supplies, and equipment to the foodservice industry. The company currently operates through multiple brands including AllPoints Foodservice Parts & Supplies, Tundra Restaurant Supply, Franklin Machine Products, Mill Hardware, and Restaurant Parts & More. DFS serves over 250,000 foodservice customer locations across multiple end-markets, including restaurants, service agencies, equipment and supplies dealers, and institutions. DFS is headquartered in Mt. Prospect, Illinois and manages operations in seven distribution facilities and brand headquarters located across the United States. The combination of its geographic footprint, coupled with an expansive item profile of over 100,000 SKUs, enables DFS to quickly and efficiently meet the needs of its valued customers.
About KRG: Founded in 1996, KRG is a Denver-based private equity firm with $4.3 billion of capital either deployed or available for future investment, which includes approximately $1 billion deployed since inception on behalf of equity co-investors. KRG specializes in acquiring majority interests in middle-market companies and growing them into significantly larger enterprises through the combination of internal growth and selective strategic add-on acquisitions. KRG Capital seeks investment opportunities where we can partner with existing management teams that are committed to building best-in-class industry leading companies. Since inception, KRG has invested in 46 platform companies and has completed 165 add-on acquisitions for those platforms. More information on KRG is available at www.krgcapital.com.