C.H. Robinson acquires produce sourcing and marketing companies
C.H. Robinson acquires produce sourcing and marketing companies
C.H. Robinson Worldwide Inc., based in Minneapolis has acquired the operations and certain assets of three produce sourcing and marketing companies: FoodSource Inc., FoodSource Procurement LLC and Epic Roots Inc.
The three companies combined had gross revenues of approximately $270 million in 2004.
Terms of the acquisition were not disclosed.
The FoodSource entities, based in Monterey, CA, provide a variety of produce sourcing and distribution services including produce procurement, contract management, private-label brand management, new-item development, merchandising, packaging and transportation of produce. The FoodSource entities have approximately 260 customers, including large retail grocery chains, retail grocery wholesalers, mid-range supermarkets, specialty food chains and foodservice distributors.
The FoodSource entities were established in 1998 by Tom Minnich and Ray Griffin. Mr. Minnich, 46, served as chairman and chief executive officer of the FoodSource entities and will continue as vice president of FoodSource, now a division of C.H. Robinson, that will remain at its current location in Monterey. Mr. Griffin will remain as FoodSource?s general manager, a role similar to the one he held prior to the acquisition.
The FoodSource entities have 52 employees, all of whom are being offered employment with C.H. Robinson, said Jim Lemke, vice president of produce for C.H. Robinson. Operationally, FoodSource basically will remain the same, he said.
Epic Roots was established in 1997 by Todd Koons. Based in Monterey, CA, Epic Roots provides produce sales and product development services and is a key partner of FoodSource. Mr. Koons, 45, whose offices at FoodSource will continue there, will be with C.H. Robinson in a business development and creative marketing capacity.
?Todd will continue with customer accounts, new product development and identify new item development," Mr. Lemke said, adding that Mr. Koons? success at growing his Epic Roots business was attractive to C.H. Robinson.
In the case of Epic Roots, C.H. Robinson bought certain assets but not the name. Epic Roots Inc. was Mr. Koons? marketing business and will cease to exist. Epic Roots LLC " a processed salad company that produces mache " will remain as a separate entity and was not part of the acquisition. Mr. Koons was not involved in daily operations of Epic Roots LLC, but Food Source buys mache from Epic Roots LLC.
?FoodSource and Epic Roots will be a great fit for our expansion plans," Mr. Lemke said. "They bring management depth, skilled employees, operational excellence and supply-chain management knowledge with a proven track record of strong growth."
Mr. Minnich said that in order to continue its solid growth, the company needed to "leverage our core competencies with information and technology resources that, at our current size, we would be hard-pressed to acquire." He added that joining C.H. Robinson "is a great match of complementary resources and market segments."
Mr. Lemke said that he?s known Mr. Minnich for 15 years and that plans for the acquisition have been formulating in detail over the past year.
?Tom had mirrored Robinson," Mr. Lemke said. "FoodSource was as close to our best C.H. Robinson branches in service and strength with its customers."
The acquisition had to be good for mutual customers of C.H. Robinson and FoodSource and provide additional value, Mr. Lemke said, adding that the idea of the acquisition was well received by customers.
In October, Aptos, CA-based Newman?s Own Organics announced that it had entered the fresh produce segment of the organic food market with a line of organic packaged salads. Newman?s Own chose to partner with FoodSource Organics, a division of FoodSource Inc., to ensure quality and supply.
FoodSource established a Newman?s Own Organics fresh produce division dedicated solely to the marketing, sales and distribution of Newman?s Own Organics fresh produce.
Mr. Lemke said that C.H. Robinson is "looking forward to joining the fastest-growing segment of the organic food market."
Mr. Lemke said that C.H. Robinson?s transportation logistics would be a real boon to FoodSource. Once FoodSource starts using C.H. Robinson?s proprietary operating system, it would be able to access thousands of carriers on a daily basis, he said, adding that FoodSource does well with pickups and delivery but would have "instant leverage and capacity."
C.H. Robinson has about 12,000 shipments a day. The company has more than 200,000 refrigerated tractor trailers in its network, Mr. Lemke said.
Founded in 1905, C.H. Robinson Worldwide Inc. has gross revenues of approximately $4.3 billion and is a global provider of multimodal transportation services, logistics solutions and fresh produce sourcing, operating through a network of 176 offices in North America, South America, Europe and Asia.
C.H. Robinson is one of the larger third-party logistics companies based in North America and works with more than 35,000 motor carriers worldwide. The company is one of the larger third-party providers of intermodal services in the United States.
The three companies combined had gross revenues of approximately $270 million in 2004.
Terms of the acquisition were not disclosed.
The FoodSource entities, based in Monterey, CA, provide a variety of produce sourcing and distribution services including produce procurement, contract management, private-label brand management, new-item development, merchandising, packaging and transportation of produce. The FoodSource entities have approximately 260 customers, including large retail grocery chains, retail grocery wholesalers, mid-range supermarkets, specialty food chains and foodservice distributors.
The FoodSource entities were established in 1998 by Tom Minnich and Ray Griffin. Mr. Minnich, 46, served as chairman and chief executive officer of the FoodSource entities and will continue as vice president of FoodSource, now a division of C.H. Robinson, that will remain at its current location in Monterey. Mr. Griffin will remain as FoodSource?s general manager, a role similar to the one he held prior to the acquisition.
The FoodSource entities have 52 employees, all of whom are being offered employment with C.H. Robinson, said Jim Lemke, vice president of produce for C.H. Robinson. Operationally, FoodSource basically will remain the same, he said.
Epic Roots was established in 1997 by Todd Koons. Based in Monterey, CA, Epic Roots provides produce sales and product development services and is a key partner of FoodSource. Mr. Koons, 45, whose offices at FoodSource will continue there, will be with C.H. Robinson in a business development and creative marketing capacity.
?Todd will continue with customer accounts, new product development and identify new item development," Mr. Lemke said, adding that Mr. Koons? success at growing his Epic Roots business was attractive to C.H. Robinson.
In the case of Epic Roots, C.H. Robinson bought certain assets but not the name. Epic Roots Inc. was Mr. Koons? marketing business and will cease to exist. Epic Roots LLC " a processed salad company that produces mache " will remain as a separate entity and was not part of the acquisition. Mr. Koons was not involved in daily operations of Epic Roots LLC, but Food Source buys mache from Epic Roots LLC.
?FoodSource and Epic Roots will be a great fit for our expansion plans," Mr. Lemke said. "They bring management depth, skilled employees, operational excellence and supply-chain management knowledge with a proven track record of strong growth."
Mr. Minnich said that in order to continue its solid growth, the company needed to "leverage our core competencies with information and technology resources that, at our current size, we would be hard-pressed to acquire." He added that joining C.H. Robinson "is a great match of complementary resources and market segments."
Mr. Lemke said that he?s known Mr. Minnich for 15 years and that plans for the acquisition have been formulating in detail over the past year.
?Tom had mirrored Robinson," Mr. Lemke said. "FoodSource was as close to our best C.H. Robinson branches in service and strength with its customers."
The acquisition had to be good for mutual customers of C.H. Robinson and FoodSource and provide additional value, Mr. Lemke said, adding that the idea of the acquisition was well received by customers.
In October, Aptos, CA-based Newman?s Own Organics announced that it had entered the fresh produce segment of the organic food market with a line of organic packaged salads. Newman?s Own chose to partner with FoodSource Organics, a division of FoodSource Inc., to ensure quality and supply.
FoodSource established a Newman?s Own Organics fresh produce division dedicated solely to the marketing, sales and distribution of Newman?s Own Organics fresh produce.
Mr. Lemke said that C.H. Robinson is "looking forward to joining the fastest-growing segment of the organic food market."
Mr. Lemke said that C.H. Robinson?s transportation logistics would be a real boon to FoodSource. Once FoodSource starts using C.H. Robinson?s proprietary operating system, it would be able to access thousands of carriers on a daily basis, he said, adding that FoodSource does well with pickups and delivery but would have "instant leverage and capacity."
C.H. Robinson has about 12,000 shipments a day. The company has more than 200,000 refrigerated tractor trailers in its network, Mr. Lemke said.
Founded in 1905, C.H. Robinson Worldwide Inc. has gross revenues of approximately $4.3 billion and is a global provider of multimodal transportation services, logistics solutions and fresh produce sourcing, operating through a network of 176 offices in North America, South America, Europe and Asia.
C.H. Robinson is one of the larger third-party logistics companies based in North America and works with more than 35,000 motor carriers worldwide. The company is one of the larger third-party providers of intermodal services in the United States.
