US-based The Coastal Companies, a distributor and processor of fresh fruits and vegetables, has announced the acquisition of local prepared foods provider Hearn Kirkwood.

Financial details of the deal have not been disclosed.

The Coastal Companies, based in the Baltimore/Washington D.C. area, said it intends to “expands its capabilities and diversifies its product offering”, with the addition of grab-and-go items such as sandwiches, wraps, salads and snack trays.

John Corso, The Coastal Companies’ CEO, said: “The addition of Hearn Kirkwood greatly enhances our portfolio of prepared and ready-to-eat products and enables us to enter new and exciting markets.”

Hearn Kirkwood will join Coastal Sunbelt Produce and East Coast Fresh as The Coastal Companies’ subsidiaries.

Coastal Sunbelt Produce is engaged in perishable goods distribution, while East Coast Fresh focuses on fresh-cut produce, salsas and organics.

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By GlobalData

Hearn Kirkwood is based close to The Coastal Companies in Hanover, Maryland.

Speaking about the deal, Hearn Kirkwood president John Reichlin said: “The Coastal Companies’ network is extensive. Joining Coastal will enable us to accelerate our growth.”

Upon completion of the deal, Reichlin will continue as Hearn Kirkwood president and report to Corso.

Additionally, Hearn Kirkwood will continue to operate at its facility in Jessup in Maryland. Coastal Companies has agreed to invest capital and support growth there.

However, Hearn Kirkwood’s distribution centre in Hanover will be phased out and combined with the facility in nearby Laurel.

Founded in 1992, The Coastal Companies is a distributor of fresh produce and dairy and is a regional processor of fruits and vegetables. 

Hearn Kirkwood, founded more than 70 years ago by Peter Gilbert and his father William, supplies fresh produce and prepared food, such as wraps, sandwiches and salads, to retailers and the foodservice industry.