Capstone Partners advised City Line Distributors, Inc.—a family-owned specialty food distributor—on its recapitalization by Chicago-based private equity firm Frontenac Company. Terms of the deal were not disclosed.
City Line Distributors is a third-generation, family-owned food distributor headquartered in West Haven, CT. Founded in 1930, it is a specialty distributor with broadline capabilities focused on supplying food and food related items to restaurants, hotels, schools, colleges, and healthcare facilities. City Line is the largest single facility food distributor in New England, the fourth largest in the United States, and the 26th largest in the UniPro buying group network—the largest foodservice distribution cooperative in the U.S. City Line operates in thirty counties across New England. For more information about City Line, visit www.citylinefoods.com.
The Capstone team did an outstanding job as our sell-side advisor, from creating the initial marketing materials, to using their industry contacts to identify buyers, to seeing the transaction all the way through to close. The due diligence process was rigorous, and we could not have managed it without Capstone’s counseling and assistance every step along the way. Buyers in the current market deploy deep, talented, aggressive due diligence teams that must be countered with equal depth and talent. The Capstone team brought that talent and more. Thanks to the Capstone team we were able to realize full value for the business we built over generations.
Brian Boyle, Managing Director at Capstone and deal team lead commented, “City Line is a strongly managed company that is well positioned for continued growth. Robert Berkowitz and his team were fantastic to work with and the outcome of our process speaks for itself. We look forward to working with the team in the future as the company pursues geographic expansion through acquisitions.”
Frontenac is a Chicago-based private equity firm. The firm focuses on investing in lower middle market buyout transactions in the consumer, industrial, and services industries. Frontenac works in partnership with established operating leaders, through an executive-centric approach called CEO1ST, which seeks to identify, acquire, and build market-leading companies through transformational acquisitions and operational excellence. Over the last 50+ years, Frontenac has built a franchise working with over 300 owners of mid-sized businesses as they address complex transition issues of liquidity, management enhancement, and growth planning. For more information, please visit www.frontenac.com.
The expert investment banking professionals on Capstone Partners’ Food Investment Banking Team work with leading middle market companies operating in the Food Distribution market to advise with their strategic decision-making in order to maximize financial outcomes at every stage of the business lifecycle. Our firm has developed a full suite of corporate finance solutions, including M&A advisory, debt advisory, financial advisory, and equity capital financing to help privately owned businesses and private equity firms address any need, ranging from growth and financial or operational advisement to an ultimate exit transaction. To learn more about this transaction, or about the benefits of starting a relationship with our Consumer Investment Banking Team, contact us here.