CANTON, MA — Next Generation Vending and Food Service Inc. announced that it has signed an agreement to become a Canteen franchisee. Under the pact with Canteen, the company will acquire and divest specific territories with Canteen Vending Services and selected Canteen franchisees in the Northeast.
Further to the agreement, Next Generation reported that it has acquired Canteen franchises Loose Ends Vending & Foodservice (Batavia, NY) and the Massachusetts and Rhode Island assets of A&B Vending (Wakefield, MA). Terms of the transactions were not disclosed.
Next Generation will continue to operate out of its Canton, MA, headquarters. As a Canteen franchisee, it will join a national network of recognized vending companies. Customers will continue to enjoy its brands with the added benefit of access to Canteen’s exclusive and nationally recognized brands and leading-edge technology.
Canteen Vending Services, a Compass Group North America unit, serves 18,500 client sites from 150 branches nationwide.
Through acquisitions related to its agreement with Canteen, Next Generation said it will double its customer base and revenue and focus its geographic footprint to have significant density in key markets in the Northeast. With approximately 900 employees and more than $120 million in annual revenue, the Canton, MA-based vending company serves clients throughout the Northeast, including western New York, eastern New York, Connecticut, Rhode Island, Massachusetts and northern Pennsylvania.
Loose Ends Vending & Foodservice operated 42 vending routes, one coffee service route and six manual feeding accounts. It had operated out of four New York facilities – in Buffalo, Batavia, Rochester and Elmira – and one in Erie, PA. The company was owned by the Houseknecht family, which also owned the Pepsi-Cola Batavia Bottling Corp. that it sold nine months ago to the Pepsi Bottling Group.
Next Generation Vending will retain the majority of Loose Ends’ 155 employees, according to founder Tom Houseknecht. The business was owned by Tom Houseknecht, his brother John, brother-in-law William Barton and nephew Mike Houseknecht, who is the only family member joining the Next Generation team.
Next Generation’s purchase of the Massachusetts and Rhode Island assets of A&B Vending includes 17 routes that generate approximately $10 million in sales, according to Next Generation chairman and CEO David MacIsaac. Next Generation will integrate A&B’s Massachusetts and Rhode Island operations into its Middletown, MA, and Warwick, RI, facilities. The company will retain the majority of A&B staff serving the acquired territories, according to MacIsaac.
Founded in 1961 and led by Ed and John Dooley, A&B Vending will continue to operate as an independent company and Canteen franchise in New Hampshire.