Wholesale Produce Supply LLC, a leading fresh produce logistics and inventory management solutions provider, today announced that its parent holding company has been acquired by an investor group, led by Cross Rapids Capital L.P. (“Cross Rapids Capital”). The investor group also includes strategic partner The Baupost Group, among others. Prior to this transaction, the Company was owned by affiliates of Mill City Capital L.P.
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Founded in 1964, WPS is an integral partner to foodservice distributors, grocery wholesalers, quick-service restaurants, and other clients, as well as to its extensive network of over 300 growers globally. WPS procures and delivers approximately 100 fresh produce commodities and also performs value-added services, such as ripening, grading, fresh-cut, washing, sorting, and packaging for a variety of its products, which reduces its customers’ labor, capital equipment, and infrastructure needs. The Company offers both recurring, daily deliveries as well as just-in-time less-than-truckload deliveries, allowing for flexibility, reduced product spoilage, and enhanced inventory management, which improves its customers’ profitability. As a result, WPS has become one of the largest sources of fresh produce in the Midwestern United States and Central Canada and a one-source, trusted partner to customers.
“We are excited to partner with Cross Rapids Capital,” said Mr. Brian Hauge, Chief Executive Officer of Wholesale Produce Supply. “WPS will continue to provide its customers with reliable service and consistently high product quality, as we broaden our geographic reach and continue to expand our offering. The industry knowledge and resources that Cross Rapids Capital brings will allow us to accelerate our growth plan. We are thankful to our customer and supplier partners for their trust as well as to our team members for their service and dedication.”
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Mr. Kyle Cruz, Partner at Cross Rapids Capital, added, “With deep admiration and respect for the 57-year history and strong foundation of Wholesale Produce Supply, we are thrilled to partner with management and provide the additional tools and resources to enable the Company’s organic and inorganic growth plans.”
“We appreciate the strong partnership we enjoyed with Brian Hauge and the Wholesale Produce team and wish them the best going forward,” commented Mr. Darren Acheson, Managing Director at Mill City Capital.
Hennepin Partners served as financial advisor and Taft Stettinius & Hollister LLP as legal counsel to Wholesale Produce Supply. Mayer Brown LLP and Kirkland & Ellis LLP served as legal counsel to Cross Rapids Capital. Maranon Capital L.P. provided the debt financing for the transaction.