Talk to food and beverage dealmakers about regions that excite them for prospective transactions in the near and long-term and many will tell you: Southern California. Here’s why.
“San Diego and broader Southern California are ripe markets for produce, and in fact are some of the most active produce markets in the United States,” says Sunrise Produce CEO David Sapia. “San Diego is a culinary haven and a destination point for cuisine, from oceanside to downtown. More broadly, California is the leading market for multi-unit chains.”
Investcorp acquired a majority stake in Sunrise in October 2022. The Southern California-based produce distributor serves more than 2,000 customers across the restaurant, healthcare and retail sectors.
In May, Sunrise acquired produce distributor Moceri Produce to expand its presence in San Diego and to become the city’s largest produce distributor and one of the leading produce distributors in Southern California.
“We are excited about Moceri’s sourcing, vendor relationships and distribution assets, specifically its San Diego distribution center, and believe this transaction allows for both brands to continue growing in Southern California,” Sapia adds.
Fresh food and healthy eating will always be at the forefront of consumers’ minds. M&A in the food distribution space is being driven by distributors’ desire to expand geographically and build out their customer base.
According to Sapia, fresh produce distribution is a “highly fragmented $70 billion national market that has consistently shown resiliency through economic cycles.”
“In Southern California, we see strong trends toward consumer preferences for healthy food and specialty lines from local distributors like Sunrise Produce, as a driving force in sector growth,” he adds.
Investcorp closed over $1.2 billion for its inaugural North America private equity fund in 2023. The fund focuses on control buyout investments in middle-market businesses across the tech-enabled, professional services, data and information, supply chain and consumer services sectors.
Reach Sapia at 800-834-4926.
