The TrustHouse Services Group, a health care and education focused foodservice provider, has merged with A’viands Food and Services Management LLC and its wholly owned subsidiary, Summit Food Services LLC. The transaction will complete in early August.
TrustHouse is a portfolio company of Gryphon Investors, a San Francisco, Calif.-based middle market private equity firm. Terms of the transaction were not disclosed.
A’viands, based in Roseville, Minn., is a foodservice provider operating in 13 states and generation more than $90 million in annual sales. More than 90 percent of A’viands’ revenue is in the education, health care and corrections sectors.
Michael J. Bailey, chairman and CEO of TrustHouse, said in a prepared statement: “We are absolutely delighted with this transaction. It truly is a significant strategic milestone for both companies, allowing us to achieve significant critical mass, with combined annual revenue in excess of $200 million, operating in 32 states. We are also excited that A’viands will expand TrustHouse’s services into the corrections market.”
A’viands will continue to operate as a stand-alone division managed by current CEO Perry Rynders and his team. Rynders said, “We are also very excited about the transaction, as this is a great step for A’viands. A’viands will continue as an autonomous operation within the TrustHouse Services Group, and our focus will remain very much business as usual. TrustHouse provides broader access to capital and additional resources to help us drive A’viands forward. Our combined strength will create greater opportunity for our clients and all of our steakeholdsers.”
A’viands management will continue to own a significant equity stake in the combined company.
Gryphon partner Keith Stimson said, “The industrial logic of combining TrustHouse and A’viands was compelling to all stakeholders, and the combined company creates a clear, independent leader in the health care and education focused contract food services space. This is a very strategic transaction and we are thrilled to have Perry and his talented management group as part of the team.”
The transaction was brokered by Charlotte, N.C.-based McColl Partners, and Parker Poe Adams & Bernstein, also based in Charlotte, acted as lead counsel for TrustHouse.