Merger joins two Michigan wholesalers
Merger joins two Michigan wholesalers
Heeren Bros. and J.A. Besteman Co. announced Oct. 9 that they plan to merge, creating one of the larger family-owned produce wholesalers in Michigan.
The asset purchase will create a company with approximately 175 employees, three warehouses, a fleet of 40 trucks and the ability to serve customers throughout Michigan and into northern Ohio and Indiana. The new company will continue to do business under both family names, which enjoy strong brand recognition among their customers.
Heeren Bros. Chief Executive Officer Hal Roy will continue as chief executive of the combined company. Dave and Steve Besteman, president and vice president of sales, respectively, at J.A. Besteman, will serve the new organization in senior management positions.
"This merger brings together two good companies to make one great company," Mr. Roy said in a statement. "We have been neighbors of J.A. Besteman for more than 60 years, and while we have been competitors, we have cooperated on numerous occasions to meet the needs of our customers. "As longtime family-owned companies, Heeren and Besteman share a deep commitment to quality, customer service and an ethical approach to doing business," Mr. Roy added in the statement. "The combined company will strengthen our presence in Michigan, allowing us to expand our geographic reach and product mix to meet the needs of customers in an efficient and cost-effective manner."
Dave Besteman agreed, noting, "We, too, are pleased to align our company with Heeren Brothers. Market conditions have changed tremendously since both of our companies got their start, creating a highly competitive environment that is particularly challenging for small wholesalers. By joining together, we will be able to offer more products and services to our current customers while positioning the company for further growth. This merger is a good business decision that will benefit both Heeren and Besteman and our employees."
The transaction price for the sale, which will be finalized during the fourth quarter of 2006, was not disclosed. Heeren Bros. plans to retain the majority of employees from Besteman.
The newly combined company will offer:
" More than 250 varieties of fresh fruits and vegetables, including packaged salads and vegetable blends.
" A full line of organic produce and specialty items, including herbs.
" A full line of produce-related items, including salad dressings, croutons, dried fruit and processed garlic.
" A complete year-round floral program.
" Gourmet and deli products through Heeren's Gourmet Specialty of Michigan business unit. Launched earlier this year, Gourmet Specialty sells a wide variety of cheeses, meats, olives, pasta and related items.
" On-line ordering, whereby Heeren and Besteman currently serve more than 400 retailers, specialty grocers, restaurants and other companies in Michigan, Indiana and Ohio from more than 140,000 square feet of warehouse space in Grand Rapids.
Heeren Bros. was established in 1933 and has grown into a third-generation, family-owned wholesaler and distributor of fruits and vegetables. The addition of Gourmet Specialty in May has added a new range of customers to its distribution mix, with plans to enhance its restaurant and foodservice offerings in the coming months.
J.A. Besteman was established in 1922 and has also grown into a third- generation, family-owned produce wholesaler and distributor. The company added organic produce and a floral program during the 1990s.
"Our individual commitments to our customers will remain the same in the merged entity," Mr. Roy said in the statement. "We will deliver fresh produce of exceptional quality at competitive prices. We are committed to providing on-time delivery, exceptional customer service and flexible solutions that meet the needs of our customers."
The asset purchase will create a company with approximately 175 employees, three warehouses, a fleet of 40 trucks and the ability to serve customers throughout Michigan and into northern Ohio and Indiana. The new company will continue to do business under both family names, which enjoy strong brand recognition among their customers.
Heeren Bros. Chief Executive Officer Hal Roy will continue as chief executive of the combined company. Dave and Steve Besteman, president and vice president of sales, respectively, at J.A. Besteman, will serve the new organization in senior management positions.
"This merger brings together two good companies to make one great company," Mr. Roy said in a statement. "We have been neighbors of J.A. Besteman for more than 60 years, and while we have been competitors, we have cooperated on numerous occasions to meet the needs of our customers. "As longtime family-owned companies, Heeren and Besteman share a deep commitment to quality, customer service and an ethical approach to doing business," Mr. Roy added in the statement. "The combined company will strengthen our presence in Michigan, allowing us to expand our geographic reach and product mix to meet the needs of customers in an efficient and cost-effective manner."
Dave Besteman agreed, noting, "We, too, are pleased to align our company with Heeren Brothers. Market conditions have changed tremendously since both of our companies got their start, creating a highly competitive environment that is particularly challenging for small wholesalers. By joining together, we will be able to offer more products and services to our current customers while positioning the company for further growth. This merger is a good business decision that will benefit both Heeren and Besteman and our employees."
The transaction price for the sale, which will be finalized during the fourth quarter of 2006, was not disclosed. Heeren Bros. plans to retain the majority of employees from Besteman.
The newly combined company will offer:
" More than 250 varieties of fresh fruits and vegetables, including packaged salads and vegetable blends.
" A full line of organic produce and specialty items, including herbs.
" A full line of produce-related items, including salad dressings, croutons, dried fruit and processed garlic.
" A complete year-round floral program.
" Gourmet and deli products through Heeren's Gourmet Specialty of Michigan business unit. Launched earlier this year, Gourmet Specialty sells a wide variety of cheeses, meats, olives, pasta and related items.
" On-line ordering, whereby Heeren and Besteman currently serve more than 400 retailers, specialty grocers, restaurants and other companies in Michigan, Indiana and Ohio from more than 140,000 square feet of warehouse space in Grand Rapids.
Heeren Bros. was established in 1933 and has grown into a third-generation, family-owned wholesaler and distributor of fruits and vegetables. The addition of Gourmet Specialty in May has added a new range of customers to its distribution mix, with plans to enhance its restaurant and foodservice offerings in the coming months.
J.A. Besteman was established in 1922 and has also grown into a third- generation, family-owned produce wholesaler and distributor. The company added organic produce and a floral program during the 1990s.
"Our individual commitments to our customers will remain the same in the merged entity," Mr. Roy said in the statement. "We will deliver fresh produce of exceptional quality at competitive prices. We are committed to providing on-time delivery, exceptional customer service and flexible solutions that meet the needs of our customers."
