PROVIDENCE, R.I. — United Natural Foods, Inc. (U.N.F.I.) has acquired Nor-Cal Produce, Inc., for approximately $68.6 million in cash. The transaction includes Nor-Cal’s outstanding stock, an affiliated entity and certain real estate, and the amount is subject to customary post-closing adjustments.
Nor-Cal is a family owned and operated distributor of conventional and organic produce and other fresh products in Northern California, primarily operating out of West Sacramento. The company’s annual net sales for the 12 months ended Feb. 29 were approximately $151 million.
The acquisition of Nor-Cal will support U.N.F.I.’s expansion into the fresh category, the company said, and the transaction is expected to be accretive to its earnings in fiscal 2017.
|Steven Spinner, president and c.e.o. for U.N.F.I.|
“We are excited to expand the breadth of our fresh perimeter product assortment and distribution network with the acquisition of Nor-Cal,” said Steven Spinner, president and chief executive officer for U.N.F.I. “This acquisition further illustrates U.N.F.I.’s growth into fresh, and we look forward to working with Todd Achondo, president of Nor-Cal, who will remain at the company in a leadership role, and their entire team.”In February, U.N.F.I. acquired Haddon House Food Products, Inc., a privately owned distributor and merchandiser of natural and organic and gourmet ethnic products throughout the Eastern United States and abroad. The cash transaction was valued at approximately $217.5 million.