08/09/2008 Service Foods could make more buys; not looking to sell despite interest, CEO says

mergermarket

Service Foods, the privately held home food delivery company, and partners affiliated with its owners could make more acquisitions after a recent announcement, said chief executive Keith Kantor.

The Atlanta, Georgia-based business had 2007 revenue of USD 31m, but Kantor said the figure is more than USD 100m for all of the affiliated companies. That includes Southern Foods, which Kantor and partner Harold "Trey" Pounders just acquired along with two other partners – hospitality industry veterans Jack Pratt and Joe Rodriguez.

Kantor and company president Pounders are the co-owners of Service Foods, which had acquired the home delivery division of Southern Foods last October. Asked about M&A advisors, Kantor said the company's management is well-connected in the industry. Its corporate legal counsel is Jeremy Lantz at Lantz Law Firm in Atlanta.

While further acquisitions could play a part in the companies' growth, Kantor said his focus will be on organic growth through building out a third-party distributor program around the country. Service Foods and its subsidiaries deliver in Georgia, North Carolina, South Carolina, Tennessee and Virginia, plus parts of Alabama, Arkansas and Mississippi. It also has distributors who deliver to much of Florida and have just begun delivering its products in New Jersey.

Thanks to recent fast growth, Kantor is regularly contacted about a merger or acquisition of Service Foods. He said he is not interested in selling, as the company has many long-time employees whom he wants to see taken care of properly. Service Foods and Southern Foods have about 500 employees combined.

by Chris Marr in Atlanta

Source: www.mergermarket.com