KeHE Distributors wraps up acquisition of DPI Specialty Foods

KeHE Distributors has finalized its acquisition of western U.S. specialty wholesaler DPI Specialty Foods.

Naperville, Illinois-based KeHE, in announcing the closing of the transaction on Tuesday, said the two companies will continue to operate as separate entities pending the implementation an integration plan. KeHE unveiled the DPI acquisition, from food and beverage-focused private equity firm Arbor Investments, in late May.

The deal expands KeHE’s customer base and warehouse infrastructure. Together, KeHE and DPI serve more than 31,000 customers, carry over 80,000 SKUs and have 6,100 suppliers, deploying a total of 7 million square feet of warehouse space across all temperature zones in 19 distribution centers.

“Combining KeHE and DPI’s long histories of success and preeminent category expertise will enable retailers to respond more quickly to customer demand, offer additional supplier opportunities, and deliver enhanced consumer experiences,” KeHE President and CEO Deb Conklin said in a statement. ”Both of our organizations share an obsession for our partners, a deep commitment to our people, a focus on serving others, and financial and operational performance. This transaction represents an opportunity to capitalize on the strengths of both organizations and become an even greater force for good.”

DPI supplies ambient, chilled and frozen specialty foods—including gourmet, natural, organic, gluten-free, local and ethnic foods—to 17 Western states through distribution centers in Henderson, Colorado; Tualatin, Oregon; and Ontario, California (West Division).

With the acquisition, DPI suppliers and retailers will gain access to KeHE’s business intelligence tools, including the KeHE CONNECT platform, which brings suppliers sales reporting, business analytics, and data visualization services, KeHE noted. KeHE also offers category management services to retailers that provides data, insights and assortment recommendations that highlight market opportunities and extend their merchandising functions.

An employee-owned, B Corp-certified company, KeHE supplies natural, organic, fresh and specialty food, groceries and other products to more than 30,000 natural food stores, supermarket chains, independent grocery stores, online retailers, retail pharmacies, convenience stores, foodservice providers and specialty retailers across North America.