Foodservice Equipment & Supplies

APR 2018

Foodservice Equipment & Supplies magazines is an industry resource connecting foodservice operators, equipment and supplies manufacturers and dealers, and facility design consultants.

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Page 49 of 107

48 • FOODSERVICE EQUIPMENT & SUPPLIES • APRIL 2018 By the Editors S ales among the top 100 foodservice equipment and sup- plies dealers totaled $9.637 billion in 2017, up 11.37 percent from $8.653 billion in 2016, according to FE&S' 2018 Distribu- tion Giants study. Sixty- five percent of the top 100 dealers reported increased sales, down 16 percent from last year. And 27 percent reported a decline in sales, which is 12 percent more compared to last year. The composition of this year's list of the top 100 foodservice equipment and supplies dealers by sales volume looks fundamentally different from 2017 due to rampant consolidation. In a segment known for mov- ing rather slowly, the dealer community saw roughly 20 merger or acquisition transactions in the 13-month period spanning February 2017 to March 2018. A variety of factors continue to fuel this segment's merger mania, none so prominent as the presence of private equity firms. For example, when Edward Don & Co. (3) sold a stake of the company to private investment firm Vestar Capital Partners last spring, the company announced its intention to grow via acquisition. And the Woodridge, Ill.-based dealer did just that by acquiring two 2017 top 100 dealers: Atlanta Fixture and Smith and Greene. In addition, TriMark USA (1) continued to grow via acquisition when it purchased Chef's Toys (21) in March. This deal further solidified TriMark's presence in southern California by supplementing its design ca- pabilities and adding a retail element to its business in the region. This came shortly after private investment firm Centerbridge Partners purchased TriMark from Warburg Pincus. For all in- tents and purposes, TriMark sparked this spate of mergers and acquisitions when the dealer announced its intent to purchase Hockenbergs in February 2017. Another company active on the acquisition trail in 2017 was Singer Equipment Co. (6). Following through on its vision to provide contiguous service down the Atlantic coast, the Elverson, Pa.-based dealer bought two Maryland dealers in the past year: Ashland Equipment (45) and Facilities Services Inc. Ashland expands Singer's presence in the Maryland, Delaware, Washington, D.C., and Virginia markets through the dealer's contract work with healthcare, higher education, K-12, business and industry, and restaurant operators. Facilities Services specialized in commercial foodservice equipment, engineering, custom stain- less fabrication, logistics, and project fulfillment for the hospitality and lodging industries. Its scope of work included supporting major remodeling, renovation and new construction projects. It was not just the top 10 dealers who had fun swimming in the merger and GIANTS DISTRIBUTION FE&S ' 2018

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