GS Foods Group is exploring a sale that could value the private-equity-owned meal distributor at more than $1.5 billion, including debt, according to people familiar with the matter.
Highview Capital and A&M Capital Partners, the owners of GS Foods, have hired investment bank Harris Williams to explore a sale of the Ontario, California-based company, the sources said.
GS Foods generates around $150 million in 12-month earnings before interest, taxes, depreciation and amortization, the sources said.
The sources cautioned that no deal is certain and asked not to be identified because the matter is confidential. Highview declined to comment, while GS Foods, Harris Williams and A&M did not respond to requests for comment.
GS Foods provides meals to a range of institutions and companies, including schools, prisons and hospitals. It delivers 6.5 million meals to students each day, according to Highview’s website.
A&M Capital, which is Alvarez & Marsal Capital’s investment arm, and Highview formed GS Foods in 2019 through the merger of Gold Star Foods Inc and Good Source Solutions Inc. The company has since grown through acquisitions, most recently buying Lamm Food Service last month.
Food distribution is a popular investment for private equity firms, which often try to sell the companies they buy to big players in the sector. Earlier this week, buyout firm Vestar Capital Partners said it would cash out on its investment in Edward Don & Company, a food service equipment and supplies distributor with $1.3 billion in annual revenue, by selling it to Sysco Corp.
