Encore Consumer Capital announces its fifth investment in perishable distribution

Encore Consumer Capital, a private equity company that invests only in top consumer product businesses, is delighted to announce that its portfolio company Tourtellot & Co., Inc. has concluded the purchase from Ryeco Inc. from the Reilly family. Reilly continues to own the company. Tourtellot | Ryeco creates a super-regional distributor of produce with several locations and a geographical footprint that extends from the Northeast to the Mid-Atlantic region of the U.S.

Ryeco is one of the leading suppliers of fresh and frozen vegetables based within Philadelphia, PA, servicing customers throughout the mid-Atlantic area. Ryeco procures products from all over the world, providing an array of premium products that are sold to a variety of final markets by establishing long-lasting, solid relationships with wholesalers restaurant chains, and supermarkets as well as others retailers.

“I am extremely pleased to have joined forces along with Michael Reilly Jr., the President of Ryeco for the purpose of driving continued development in our companies,” said Tourtellot CEO, Andrew Maniscalco. “We have forged a relationship of trading between us before the deal was completed and we are eager to expand our work in one place,” added Mike Reilly Jr.

“The combo of Tourtellot as well as Ryeco is one of the most reputable independent platforms for distribution of produce in the East Coast. We’re thrilled about the potential to increase scale using the strengths of each company,” stated Kisen Nathu Director at Encore Consumer Capital. “We are still convinced of the entire food distribution industry and will continue to be active in looking for other businesses to include in the portfolio of our company.”

Encore believes that perishable distribution of food products is a promising segment with solid market economics. The need for fresh, healthy food increases supply chains are crucial for supplying high-quality goods to retail as well as foodservice channels. Distributors of perishable products, like producers, are taking shares from distributors of broadline due to their increased attention to the quality of their service and fill rate.

This sector has proved that it is resilient to economic downturns and has been less susceptible to Amazon impacts since warehouses have to maintain multiple temperature states for a long shelf-life goods. When inflationary and normal conditions, distributors have the ability to swiftly pass on cost to their customers since their purchasing and sales cycle are dynamic.

Despite a general increase in M&A activities in the distribution sector during the past few years, the distribution landscape is extremely fragmented throughout the U.S. and ripe for the possibility of further consolidation. There are still many small family-owned businesses, and many of them have not maintained their pace with the ever-increasing demands in terms of food safety, technological advancements and the associated capital expenses.

More information is available here:

Encore Consumer Capital

1111 Pine Street Suite 1825

San Francisco, CA 94111

Tel. : +1 (415) 296-9850 encoreconsumercapital.com

Source: The Plantations International Agroforestry Group of Companies