Lipari Foods Acquired

Michigan-based distributor Lipari Foods announced today it has been acquired by Greenwich, Connecticut investment firm, Littlejohn & Co. The Lipari family, management, and prior owners H.I.G. Capital, and Sterling Investment Partners remain minority investors.

“As a result of our work together with H.I.G., Lipari Foods is larger, stronger, and more diversified today than it was four years ago,” said Thom Lipari, CEO of Lipari Foods, in a press release. “We are excited to partner with Littlejohn to support Lipari Foods’ next phase of growth.”

The news comes nearly four years after the regional distributor was bought by global investment firm H.I.G. Capital. At the time, the firm highlighted Lipari’s growth opportunities in food distribution, import, and manufacturing markets and said it planned to support the company’s organic and acquisition-driven strategy.

In May, Lipari acquired New York-based Deli-Boy, along with subsidiary Big Apple, to expand its distribution footprint in Pennsylvania, Virginia, New Jersey, Maryland, Massachusetts, North Carolina, Connecticut and New York. Earlier this year, Lipari also bought Minnesota-based Market Distributing to expand its footprint in the company’s home state as well as Wisconsin, Iowa, South Dakota and North Dakota. Through the Littlejohn investment, Lipari’s management team expects to continue fueling growth through its acquisition strategy.

“Under Thom’s leadership, Lipari has executed a number of strategic acquisitions that have positioned the company as a preeminent pure-play specialty food distribution platform in a highly fragmented sector,” Steven Kalter, managing director of Littlejohn, said in a press release. “We look forward to building on Lipari’s strong market position and accelerating its acquisition program as it seeks to become the partner of choice to food retailers nationwide.”

Lipari Foods was founded by Jim Lipari in 1963 as a family-run sauce and spice manufacturer and food distribution business. By the late 1990’s the business had expanded to incorporate a range of “perimeter-of-the-store” categories and now supplies nearly 30,000 products spanning deli, bakery, foodservice, specialty grocery, dairy, frozen seafood and meats, confections and international foods.

The company is led by Jim Lipari’s son, Thom Lipari. Since the early 2000’s it has acquired 16 distribution and manufacturing facilities, created JLM Manufacturing, which produces both branded and private label offerings, and operates over 500,000 sq. ft. of dry and frozen warehouse space. Lipari Foods has over 2,400 employees and services independent and specialty grocers as well as national chains and convenience stores across 27 states.

While Lipari has served as a launchpad for numerous brands looking to expand their distribution footprint or increase presence among regional retailers in the Midwest, the company has also been a buyer, acquiring small brands to increase specialty offerings within its portfolio. In the past it has picked up companies like Middle Eastern and Eastern European food business Tut’s International, Ohio-based Troyer Cheese, and Michigan-based specialty food brand Jerusalem Foods.

The company plans to continue building on this trajectory with the support of its new majority shareholder Littlejohn. The private equity firm, which focuses investing in the operational performance of middle-market industrial and service companies, has worked with distributors across a range of industries. Littlejohn is one of the largest investors in Weight Watchers International (WW) and has made multiple investments in food manufacturing, supply and distribution businesses including AmeriQual Group, CTI, Nellson Nutraceutical and Van Houtte.

“Littlejohn’s proven ability of building and scaling distribution businesses will be valuable as we seek to expand our capabilities while continuing to deliver high-quality products and service for our long standing customers,” said Lipari in a press release. “We look forward to leveraging the firm’s resources to accelerate our growth trajectory and execute on Lipari’s significant organic and acquisition growth initiatives.”

Gibson, Dunn & Crutcher LLP served as legal counsel to Littlejohn. Piper Sandler and Harris Williams were financial advisors to Lipari Foods and McDermott Will & Emery LLP served as legal counsel to Lipari Foods and H.I.G. Capital.