Lower middle market private equity firm Rotunda Capital Partners has agreed to acquire IF&P Foods, a leading produce distributor in the Midwest U.S.

IF&P Foods was formed in 1997 through the merging of Piazza Produce and Indianapolis Fruit, and provides fresh and packaged produce along with partially prepared meal components to approximately 7,500 grocery stores, restaurants, schools, and food service providers throughout the Midwest. Other businesses in the IF&P Foods platform include Garden Cut, which was formed by Indianapolis Fruit in 199; Circle City Produce, which was acquired in 2006; and Papania’s, which was acquired in 2015.

Since its founding IF&P Foods has grown to include five facilities totaling 225,000 square feet of warehouse space and more than 340 refrigerated trucks that deliver fruit, vegetables, dairy and floral products across more than 14 states.

“We’ve been looking for a platform company in the produce distribution sector for quite some time, and IF&P is an exciting company with tremendous growth prospects,” said Dan Lipson, partner at Rotunda Capital. “Their team has built a leading company in the category, and they are well-positioned to serve their customers’ growing demand for high quality product and services. Combined with our distribution expertise, there’s a great opportunity to expand IF&P’s reach and offerings and provide a new platform for growth.”

Tapping In

Demand for fresh produce has been climbing due to a combination of factors, and the acquisition of IF&P will give Rotunda greater exposure to a growing segments within the food supply chain.

Fruit consumption, excluding juice, is expected to see 9 percent growth in the five years to 2020, while fresh vegetable consumption is expected to see 8 percent growth over the same time period, according to State of the Plate – 2015 Study on America’s Consumption of Fruit & Vegetables published by the Produce for Better Health Foundation.

Driving factors include more knowledgeable and involved consumers demanding fresher options both at the grocery store and in restaurants and fast service locations; rising meat prices coupled with higher awareness and concern over animal welfare in production models; the rising popularity of juicing and integrating fruits and vegetables into snack foods; and the exclusivity factor that comes with foods that are available and at their peak during certain times of the year.

Rotunda

Launched in 2009, Rotunda targets founder-owned lower-middle market companies that are faced with the “Entrepreneur’s Dilemma”, or the question of how to raise capital to fund growth while also diversifying holdings, according to the firm’s website.

Over the past eight years, Rotunda has made 10 investments and three exits, with the firm’s partners being active participants in each deal, providing guidance and using their extensive industry and financial relationships to support each of the firm’s portfolio companies in reaching their growth objectives.

“Rotunda’s significant distribution expertise with industries undergoing strong growth trends and their focus on partnership with existing management and workforce was very appealing to us as we look to continue our market leadership,” said Greg Corsaro, CEO of IF&P. “Our mission remains unchanged – to deliver on the promise to our customers and employees to help them succeed and be the best they can be, and Rotunda’s investment and partnership will help maintain that pledge as we take our business to the next level.”

-Lynda Kiernan

Lynda Kiernan is Editor with GAI Media and daily contributor to GAI News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com.