LITTLE ROCK, Ark. -- Harvest Foods here has signed a definitive agreement to acquire Rand's, a regional wholesaler based here, in a move that Harvest contends will jump-start its small wholesaling business and bring the chain into new markets.
The transaction, whose terms weren't revealed, is expected to close later this month.
Harvest Foods, which is self-supplied, operates 54 conventional stores in Arkansas, Mississippi, Louisiana and Texas, with sales of about $425 million.
Rand's, which serves more than 650 customers in Arkansas, Tennessee and Louisiana, will add about $80 million to Harvest's volume base. The deal will enable Rand's to expand its product lines with a greater assortment of perishables
from Harvest's retail distribution operation.
Mike Marcussen, vice president of human resources at Harvest, told SN, "Rand's will be a springboard for Harvest into the wholesale business, and we're excited by the opportunities, skills and talents that Rand's will bring as we move forward to enable us to move more aggressively into geographic areas like Tennessee."
Under terms of the agreement, Rand's will become a wholly owned subsidiary of Harvest and will retain its name. It will be responsible for all wholesaling operations of the combined companies, including oversight of Harvest's Southwest Wholesale Grocery.
Southwest, the wholesale business that Harvest established in 1992, currently serves only a small handful of customers. Dennis Smith, Southwest's general manager, will join the Rand's sales force.
Harry Janson, president and chief executive officer of Harvest Foods, will become chairman and CEO of Rand's; Polly Rand Martin, the wholesaler's current chairman, CEO and chief financial officer, will become president and chief operating officer of the subsidiary.
Frank Hilliard will continue with Rand's as vice president of warehouse operations, and Raymond Scroggins will continue as Rand's vice president of sales.
According to Janson, "This is a really great opportunity for both Rand's and Harvest Foods. It allows Harvest Foods to diversify from the retailing business and establish a strong wholesaling presence regionally, including not only conventional grocery stores but also convenience stores and military bases."
Rand's operates a 141,000-square-foot distribution center in North Little Rock that offers 14,000 products. Harvest, which was established in 1987 when Safeway, Oakland, Calif., sold its Little Rock division to local management, supplies its 54 stores out of a 425,000-square-foot distribution center here.
