TrustHouse Services Group, a Charlotte, N.C.-based food services company, has merged with A’viands Food and Services Management, a Roseville, Minneapolis-based wholly owned subsidiary Summit Food Services. According to TrustHouse, the combined company, which focuses primarily on the healthcare, education, and correction sectors, will rank among the top 10 food providers in the U.S.
Terms of the acquisition were not disclosed. TrustHouse is backed by the middle-market private equity firm Gryphon Investors, based in San Francisco.
TrustHouse Services Group, a leading Healthcare and Education-focused food services company, announced today a merger with A’viands Food and Services Management LLC and its wholly owned subsidiary Summit Food Services LLC. The transaction is scheduled to close in early August. TrustHouse is a portfolio company of Gryphon Investors, a San Francisco-based premier middle-market private equity firm. Terms of the transaction were not disclosed.
A’viands, headquartered in Roseville, MN, is a premier food services provider operating in 13 states and generating over $90 million of annual revenue. Over 90% of A’viands’ revenue is derived from the Education, Healthcare and Corrections sectors.
The combined company will rank among the top 10 food services providers in the United States, and will be one of the leading food services providers focused primarily on the Healthcare, Education and Corrections sectors.
The Chairman and Chief Executive Officer of TrustHouse, Michael J. Bailey, said, “We are absolutely delighted with this transaction. It truly is a significant strategic milestone for both companies, allowing us to achieve significant critical mass, with combined annual revenue in excess of $200 million, operating in 32 states. We are also excited that A’viands will expand TrustHouse’s services into the corrections market.”
Going forward, A’viands will continue to operate as a stand-alone division managed by current CEO Perry Rynders and his team. Rynders said, “We are also very excited about the transaction, as this is a great step for A’viands. A’viands will continue as an autonomous operation within the TrustHouse Services Group, and our focus will remain very much business as usual. TrustHouse provides broader access to capital and additional resources to help us drive A’viands forward. Our combined strength will create greater opportunity for our clients and all of our stakeholders.”
A’viands’ management will continue to own a significant equity stake in the combined company.
Gryphon Partner Keith Stimson commented, “The industrial logic of combining TrustHouse and A’viands was compelling to all stakeholders, and the combined company creates a clear independent leader in the Healthcare and Education-focused contract food services space. This is a very strategic transaction and we are thrilled to have Perry and his talented management group as part of the team.”
The transaction was brokered by Charlotte, NC-based McColl Partners, and Parker Poe Adams & Bernstein, also based in Charlotte, acted as lead counsel for TrustHouse.