Vitality Foodservice Canada, Inc., a subsidiary of Vitality Beverages, Inc., reached an agreement today to acquire the assets of Canadian beverage distributor Peerless Foods, Ltd.
Peerless is based in Montreal and has additional operations in Quebec City. The company has been a Vitality distributor since 1957 and currently distributes Vitality brand juices, liquid coffee and related supplies throughout the province of Quebec.
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Peerless reported revenues of approximately $5.6 million dollars Canadian in 1999. Its primary market focus is in the areas of health care, fast food and hotels; these segments represent over 80% of its sales.
The newly-incorporated Vitality Foodservice Quebec, Ltd. (VFQ) will operate the acquired assets of Peerless, and will allow Vitality Foodservice to widen its distribution network in Canada and expand its product offerings.
Vitality Beverages, Inc., CEO Bob Peiser noted that the deal completes the geographic reach of Vitality’s sales and equipment service business across Canada.
In addition, VFQ will give Vitality the ability to expand product lines throughout Quebec to include such items as liquid coffee and cocktail mixers, and to expand access to Quebec, where one-third of all Canadians live.
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By GlobalData“Our acquisition of Peerless gives us an added advantage in capturing the Canadian market,” Peiser said. “The growth potential there is considerable.”
Vitality Beverages was formed in July 1999 through the purchase by two private equity investors, New York-based Caxton-Iseman Capital and Dallas-based Engles Urso Follmer Capital Corporation, of certain juice-related businesses to be a platform for making acquisitions in the retail private label juice industry and in the non-carbonated foodservice beverage industry.
Vitality’s two primary subsidiaries are Pasco Beverage Group, which operates its retail businesses through Pasco Brands, and Vitality Foodservice, Inc., which is a leading provider of a broad range of juice and other beverage products to the foodservice industry in the U.S., Canada, Europe, Latin America and Asia.
With this transaction, Vitality Beverages’ operating units have acquired seven companies since Vitality’s formation.
Vitality has a total revenue base of approximately $700 million; owns 11 juice packaging and fruit processing plants throughout the U.S. and Canada; and has an equity interest in a packaging facility in Holland.
