Private Equity Firm Highview Capital Acquires Gold Star Foods, Plans Merger

The deal creates a specialized food powerhouse in the United States

Highview Capital announced it has acquired Gold Star Foods, a specialized food distributor to K-12 child nutrition programs. After the deal closes, Gold Star will merge with an existing Highview portfolio company called Good Source Solutions. The portfolio firm operates in similar segments.

Highview Capital is a private equity firm in Los Angeles. It has about $500 million in management. Highview invests in middle-market businesses. Its targets typically face inflection points. The firm engages in transformations, whether those are turnarounds or the management of rapid growth.

Highview Capital Looks to Merger Upside

Meanwhile, the combination of Gold Star and Good Source will establish a new leader in specialized foodservice distribution. Furthermore, its customers include the K-12, corrections and other segments requiring specialized products and services. GS Foods will also focus on these segments with sales and marketing programs tailored to meet customer needs. It will also aim to ensure that more students and customers have access to healthy meals each day. The combined company will have a national footprint with substantial market presence across the United States. The new firm will have at least 8,000 customers nationwide.

“This is a transformational deal, uniting two specialized foodservice powerhouses, which together will have a broad national footprint with highly complementary strengths,” said Ryan McCarthy, Co-Founder of Highview. “Gold Star earned its reputation for outstanding customer service and product quality, and we have been impressed by its distribution capabilities and presence within the K-12 market. Specialized food service distribution is a highly fragmented industry, and market leaders are differentiated by the sophistication and scale of their distribution network, as well as their commitment to quality and to satisfying the customer. We believe both Gold Star and Good Source more than meet these criteria, and we are excited to partner with and continue to support both brands.”

[Related: Three Takeaways from the New KKR Consumer Report]

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