KeHE acquires Monterrey Provision Co.

KeHE Distributors, Naperville, Ill., said it acquired San Diego-based Monterrey Provision Co., a distributor of products for the perimeter departments of retail grocery stores. Monterrey is a 40-year old family-owned company.

"We view the perimeter as an essential element of our growth strategy," said Brandon Barnholt, president and CEO, KeHE. "The acquisition of Monterrey expands our perimeter capabilities and further enables our growth plans. This is similar to the advantages we gained in the organic business with the acquisition of Nature's Best in August 2014."

KeHE and Monterrey merges two successful organizations with complementary assets and skills. The acquisition will help advance KeHE's strategic plan and aligns with KeHE's vision to be the trusted distributor for natural, organic and specialty products, the company said.

"With the addition of Monterrey, we are better positioned to capitalize on opportunities in the perimeter and partner with customers across their total store," said Mike Leone, chief commercial officer, KeHE.

The acquisition will add two distribution centers in San Diego, Calif., and Oklahoma City, Okla., to KeHE's existing network of 16 distribution centers in the United States and Canada. Currently, KeHE said it does not have facilities in those cities.

"Joining the KeHE family leapfrogs Monterrey by years in our ability to extend our excellence in fresh perimeter distribution to the entire country," said Luke Abbott, president, Monterrey. "Further, KeHE and Monterrey couldn't be better cultural fits for each other."