SAN FRANCISCO – Encore Consumer Capital (“Encore”), a private equity firm that invests exclusively in leading consumer products companies, is pleased to announce its portfolio company Tourtellot & Co., Inc. (“Tourtellot”) has completed the acquisition of Ryeco Inc. (“Ryeco”) from the Reilly family, who continue to be an owner in the combined business. Tourtellot | Ryeco creates a super-regional produce distributor with multiple facilities and geographical reach from the northeast through the mid-Atlantic U.S.
Ryeco is a leading distributor of fruits and vegetables located in Philadelphia, PA, servicing customers across the mid-Atlantic region. Ryeco sources products from across the globe, offering a diversified mix of high-quality produce sold into multiple end markets through long-lasting and well-fostered relationships with wholesalers, supermarkets, restaurants and other retailers.
“I am thrilled to be partnering with Michael Reilly Jr., President of Ryeco, to drive continued growth in our businesses,” said Tourtellot CEO, Andrew Maniscalco. “We developed a trading relationship with each other before the transaction closed and are excited to broaden those efforts as one organization,” added Mike Reilly Jr.
“The combination of Tourtellot and Ryeco creates one of the leading independent produce distribution platforms on the east coast. We’re excited about the opportunities to drive further scale by leveraging each organization’s respective strengths,” stated Kisen Nathu, Director of Encore Consumer Capital. “We continue to believe in the food distribution sector broadly and remain very active in seeking other companies to add to our portfolio.”
ENCORE CONSUMER CAPITAL EXPERTISE IN SPECIALITY DISTRIBUTION
The Ryeco transaction is the 5th investment in perishable distribution for Encore Consumer Capital.
Encore’s first investment in the sector was in Freshko Produce, based in Fresno, CA, which was ultimately sold to C&S Wholesale in 2015. Encore acquired Tourtellot in 2019, which is a leading produce distributor based in Warwick, RI.
In April 2023, Encore acquired General Produce, a produce distributor based in Sacramento, CA. The company transitioned into a brand-new state-of-the-art distribution facility in 2022, and is rapidly pursuing growth to utilize its new capacity. Encore is also an investor in Pint Size Hawaii, a frozen and refrigerated food and beverage distributor.
Encore believes perishable food distribution is an attractive sector with compelling underlying market fundamentals. The demand for fresh foods continues to increase, and supply chains are critical in delivering high quality products to both foodservice and retail channels. Perishable distributors, such as produce distributors, are gaining share from broadline distributors given their heightened focus on service, quality and fill rates.
The sector has proven to be recession resilient and less impacted from Amazon effects since warehouses need to have multiple temperature states to adequately handle short shelf-life products. In both normal and inflationary times, distributors are able to rapidly pass through costs to customers as the purchasing and sales cycle is fluid.
Despite an overall increase in M&A activity in distribution over the past several years, the landscape remains highly fragmented across the U.S. and ripe for further consolidation. The sector still contains many family owned businesses and not all of them have been able to keep up with increasingly stringent requirements of food safety, technology and associated capital expenditures. Encore seeks to be a solution for family owned food distribution businesses that are seeking liquidity and a value added private equity partner.
About Encore Consumer Capital
Encore Consumer Capital is a private equity investment firm focused on the consumer products industry. The firm has raised approximately $750 million in equity capital and invested in over 38 companies in the sector. Encore’s current and prior investments include food and beverage manufacturers and marketers, pet products companies, personal care/beauty companies, and food/produce distribution companies. The firm targets companies with between $10 million and $100 million in annual revenues where Encore’s strong expertise in strategy development, brand marketing, manufacturing and supply chain optimization, and distribution expansion can drive performance.
To learn more, visit www.encoreconsumer.com