Five Star Food Service Sells Controlling Interest To Freeman Spogli

Posted On: 3/29/2019

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CHATTANOOGA, TN — Five Star Food Service reports that it has been acquired by Freeman Spogli & Co., management and other investors. Freeman Spogli (New York City and Los Angeles, CA) is a private equity firm that concentrates on investing in and partnering with management in U.S. consumer and distribution companies.

Five Star is a leading provider of unattended food and beverage services in the Southeastern United States. It operates more than 1,350 micromarkets, 17,500 vending machines, 7,300 coffee dispensers and contract dining facilities that serve more than  two million meals annually throughout Tennessee, Georgia, Mississippi, Alabama and Kentucky. The company serves in excess of 8,500 customers through its network of 17 branch locations running 300 routes. Five Star is the largest franchisee of Canteen Vending Services, a division of Compass Group USA, Inc., the leading provider of micromarkets and other unattended food service solutions in the United States.

"Micromarkets are a high-growth segment of unattended foodservice benefiting from shifting consumer preferences towards snacking, portable meals, and fresh and healthy offerings," said Brad Brutocao, a partner at Freeman Spogli. "Led by chief executive Alan Recher, the Five Star management team has done an outstanding job positioning Five Star as the leading provider of unattended food and beverage solutions in its geographies.

"We are pleased to partner with management in the next phase of this exciting growth story, and look forward to supporting Five Star as long-term investors in the company," Brutocao summed up.

Recher observed, "We are thrilled to partner with Freeman Spogli, whose relevant experience in value-added distribution, foodservice, and convenience retail are a perfect fit for the company, and will be invaluable resources as we continue to grow the business organically and through acquisitions."

Five Star Food Service is a leader in micromarkets, full-line vending, corporate pantry kitchen, coffee and water services, full-service dining, catering and sustainable products. Founded in 1993, Five Star has grown into one of the largest privately-held operators in the United States.