Fresh Direct acquires fruits wholesaler Islands West in Canada

Private equity firm HKW’s portfolio company Fresh Direct Produce has acquired fresh-cut vegetables wholesaler Islands West Manufacturing for an undisclosed sum.

Established in 1995, Islands West is also a wholesaler of produce, processed fruits and dried spices.

HKW partner and chairman of the Board for Fresh Direct Produce Kent Robinson said: “We are very pleased to partner with an organisation that has the talent and capabilities of Islands West. The expanded range of products, in particular, the offering of fresh-cut vegetables, allows for significant cross-selling opportunities.

“HKW’s emphasis on health and wellness remains a key area of focus, this add-on strengthens our commitment to that sector.”

Fresh Direct Produce distributes more than 1,000 domestic and imported organic fruit and vegetable items.

The company operates three distribution centres, two in Vancouver and one in Calgary, and sources fresh produce items from 35 countries.

Fresh Direct Produce co-founder, president and CEO Davis Yung said: “This acquisition meets several key objectives for Fresh Direct Produce, offering our customers a range of complementary new products, a wider and more efficient distribution network, and a state-of-the-art processing facility, adding capacity and improving operations.

“With a strong leadership team already in place, Islands West immediately provides the fresh-cut capabilities our customers want, while at the same time expanding our overall product offering and geographic reach.”

In July, Fresh Direct Produce acquired Emperor Specialty Foods.

Headquartered in Canada, Emperor is engaged in the distribution of mushrooms, pears and speciality fruits and vegetables.

HKW noted that the deal would provide ‘meaningful growth opportunities.’