Wholesale Produce Supply Acquired by Cross Rapids Capital
MINNEAPOLIS, Oct. 29, 2021 /PRNewswire/ — Wholesale Produce Supply LLC (“Wholesale Produce Supply”, “WPS” or the “Company”), 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.
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.”
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.
About Wholesale Produce Supply LLC
Wholesale Produce Supply LLC is a fresh produce logistics and inventory management solutions provider to grocery wholesalers, foodservice distributors, and other customers throughout the Midwestern United States and Central Canada. Through its vast network of over 300 growers globally, WPS sources and aggregates approximately 100 fresh produce commodities. The Company also performs value-added services, such as ripening, grading, fresh-cut, washing, sorting, and packaging and delivers both on a recurring, daily basis as well as on a just-in-time less-than-truckload basis. WPS offers competitive pricing, reliable service, consistency, and flexibility.
About Cross Rapids Capital L.P.
Cross Rapids Capital L.P. is an operationally-driven investment firm, dedicated to North American middle-market industrial and services companies. We partner with owners and management teams to accelerate companies, and we bring decades of sector, operational, and investing expertise and a hands-on, collaborative approach to empower their business success.
About The Baupost Group LLC
The Baupost Group is a Boston-based investment manager with a long-term, collaborative approach. Since 1982, the firm has been thoughtfully stewarding and compounding capital on behalf of families, foundations, and endowments, as well as employees who collectively are the firm’s largest client. Today Baupost manages roughly $31 billion. With a broad and flexible charter, and depth of experience across all asset classes and market environments, Baupost is strongly positioned to evaluate and pursue highly complex opportunities, to structure transactions flexibly to meet the requirements of sellers, and to leverage the duration of its capital to be long-term partners with management teams.
About Mill City Capital L.P.
Based in Minneapolis, MN, Mill City Capital is a private equity firm that makes investments, in partnership with management, in lower middle-market companies with enterprise values ranging from $20 million to $100 million. We focus on companies based in the midwestern United States where the principals of Mill City Capital have significant relationships and experience.
SOURCE Cross Rapids Capital LP