Dive Brief:
- KeHe Distributors has agreed to acquire DPI Specialty Foods from private equity firm Arbor Investments, according to a Wednesday company announcement.
- Kehe said the acquisition of the Western U.S. distributor will enhance its fresh market capabilities and broaden its complementary customer base.
- The acquisition continues KeHe’s efforts to broaden its reach across North America.
Dive Insight:
Details of KeHe’s latest acquisition have not been disclosed as the transaction is subject to customary closing conditions as well as government regulatory approvals, per the press release. Until approval, KeHe and DPI will continue to operate independently.
KeHe said the transaction would bolster its food portfolio, in turn allowing retailers to more quickly respond to customer demand. The distributor also noted it will add more than 1,000 DPI customers across all channels, delivering products in a one-truck solution with support from data-driven insights, business intelligence tools and additional warehouse space
“Both DPI and KeHe have built impressive networks, deep industry and category expertise, and value-added services over decades of operation,” Russ Blake, DPI’s CEO, said in a statement. “Combining our complementary strategies allows us to further capitalize on those strengths to offer superior value for the U.S. food industry.”
Also this month, KeHe partnered with Cornerstone Consulting to enable smart shelf tags, providing a more “tech-forward experience” for retailers, suppliers and shoppers. The digital tags provide suppliers with information on promotional offers, nutrition, traceability and more, and the technology sources, manages and updates content automatically, according to KeHe.
Both the acquisition and technology upgrade come just a few months after KeHe announced Deb Conklin would step in as the company’s CEO and president, a change that took effect April 1.
