Pro*Act's Steve Grinstead behind launch of new holding company
Pro*Act's Steve Grinstead behind launch of new holding company
Steve Grinstead, president and chief executive officer of Monterey, CA-based Pro*Act, has partnered with others to launch National Distribution Group LLC, a newly formed Dallas-based holding company whose primary focus is to acquire or start up regional produce distribution companies.
Pro*Act is a leading fresh produce supplier to the foodservice industry. Mr. Grinstead told The Produce News that he will retain his role with Pro*Act while adding the titles of president and CEO of NDG. Mr. Grinstead said that he would be spending a good deal of time in the Dallas area.
Though Pro*Act and NDG are separate operations, there is a symbiosis between the two businesses, he said. By way of example, NDG as a holding company might acquire a Pro*Act distribution company or a regional produce distribution company, Mr. Grinstead said.
"[NDG] helps support Pro*Act's national coverage," Mr. Grinstead said. He added that NDG would be focused on foodservice and retail distribution, referring to NDG as a "think tank that is produce-specific."
In a Sept. 27 press release, NDG referred to itself as "a group of private investors that include owners of some of the nation's leading independent produce distribution companies."
The release said that NDG will target transactions with privately held companies in the foodservice, wholesale or retail distribution segments of the industry. Management-led buyouts, equity stakes and strategic resource partnerships are some of the acquisition structures that NDG can provide to entrepreneurial mid-market companies in the perishable food industry.
Mr. Grinstead said in the release that independent distributors "compete in an ever-changing and consolidating marketplace," and that while the distribution network has room for further consolidation, "independents have limited options when considering their long-term exit strategies."
The release stated that NDG is interested in partnering with those independent companies to provide more flexibility in that process.
Pro*Act is a leading fresh produce supplier to the foodservice industry. Mr. Grinstead told The Produce News that he will retain his role with Pro*Act while adding the titles of president and CEO of NDG. Mr. Grinstead said that he would be spending a good deal of time in the Dallas area.
Though Pro*Act and NDG are separate operations, there is a symbiosis between the two businesses, he said. By way of example, NDG as a holding company might acquire a Pro*Act distribution company or a regional produce distribution company, Mr. Grinstead said.
"[NDG] helps support Pro*Act's national coverage," Mr. Grinstead said. He added that NDG would be focused on foodservice and retail distribution, referring to NDG as a "think tank that is produce-specific."
In a Sept. 27 press release, NDG referred to itself as "a group of private investors that include owners of some of the nation's leading independent produce distribution companies."
The release said that NDG will target transactions with privately held companies in the foodservice, wholesale or retail distribution segments of the industry. Management-led buyouts, equity stakes and strategic resource partnerships are some of the acquisition structures that NDG can provide to entrepreneurial mid-market companies in the perishable food industry.
Mr. Grinstead said in the release that independent distributors "compete in an ever-changing and consolidating marketplace," and that while the distribution network has room for further consolidation, "independents have limited options when considering their long-term exit strategies."
The release stated that NDG is interested in partnering with those independent companies to provide more flexibility in that process.
