Sole Source Capital acquires majority stake in Worldwide Produce

US-based private equity firm Sole Source Capital (SSC) has acquired a majority stake in speciality foods, dairy, fresh fruits and vegetables distributor Worldwide Produce (WWP).

Financial details of the deal have not been divulged.

Established in 1989, WWP distributes fresh produce and dairy to independent and chain restaurants across the Western US region.

With nearly 6,000 stock keeping units (SKUs), WWP operates two distribution facilities, which are located in Los Angeles and Las Vegas.

WWP co-founder Abbas Ghulam said: “We are thrilled to be partnering with Sole Source as we further solidify our market leadership in the Southern California market and expand into additional geographies.

“Sole Source’s wealth of experience investing in founder-owned companies will be invaluable as we expand our Company’s footprint while maintaining WWP’s uncompromising commitment to product quality and customer service.

“I am excited to work closely with the Sole Source team to achieve our strategic objectives.”

Headquartered in Santa Monica, California, SSC claimed that it focuses its investment on companies with high precision manufacturing, diversified distribution and industrial service.

With the acquisition of a significant stake in WWP, SSC intends to use WWP as a platform to make further investments in the regional foodservice distribution segment.

Sole Source Capital managing partner David Fredston said: “Worldwide Produce represents a compelling opportunity to invest in a premium business with an established reputation for high-quality service.

“We are impressed with WWP’s strong track record, which includes sustained revenue growth through the Great Recession, and look forward to leveraging the Company as a platform for consolidation in the space.”