US producer and marketer of fresh fruit and vegetables, Fresh Del Monte Produce, has announced that it has acquired for cash Standard Fruit and Vegetable Company.
It is hoped that the acquisition of Standard Fruit and Vegetable, a Dallas-based integrated distributor of fresh fruit and vegetables with annual revenues of US$335m, will enhance Fresh Del Monte’s diversification strategy by expanding its product mix and increasing its presence in key markets, particularly the US Southwest. Fresh Del Monte expects to realise substantial cost savings from Standard’s acquisition as it integrates distribution, sales, marketing, transportation and purchasing with Fresh Del Monte’s infrastructure.
The acquisition will provide Fresh Del Monte with a complementary distribution network – which includes facilities in Dallas, Kansas City, Phoenix, Atlanta and Monte Vista, Colorado, as well as customer relationships with more than 500 retail, food service and supercentre customers in around 30 states in the Southwest, Midwest and Southeast.
Standard is a national distributor of tomatoes, potatoes and onions, three products that Fresh Del Monte does not currently offer. Standard also supplies a line of specialty items, many of which are not currently included in Fresh Del Monte’s product line.
