Lipari Foods.

Lipari Foods

Lipari Foods

One of the largest specialty food products distributors in the Midwest.  Lipari offers its 4,600 customers, which are primarily independent and specialty grocery store chains, access to over 18,000 national, regional and proprietary stock keeping units across a broad range of “perimeter-of-the-store” food product categories, including, among others, deli, bakery, dairy, confections, specialty natural, organic and frozen.  The business was started in the early 1950’s by Jim Lipari, who sold unique products from the back of his station wagon.  The Lipari family remains active in the management and ownership of the business today.

Sterling as Partners

Acquisition Program
  • The company completed one acquisition in December 2014, a second acquisition in January 2015, a third in January 2016 and a fourth in August 2017
  • Sterling Advisor Pat Davidson assisted management with the integration of several acquisitions and developed an integration “blueprint” for future transactions 
  • Sterling professionals have been actively involved in acquisition due diligence as well as transaction structuring and financing
  • Sterling continues to work with management to develop a pipeline of actionable M&A opportunities
Investment in Additional Capacity to Support Growth
  • With Sterling’s support, Lipari expanded its footprint with the construction of a 260,000 square foot, state-of-the-art frozen warehouse facility adjacent to Lipari’s existing distribution center
  • The warehouse can support at least $300 million of additional revenue, and is expected to drive significant enhanced shipping / logistical efficiencies 
Operating and Capital Improvements
  • Sterling has advised Lipari on a number of initiatives to drive profitability, including vendor rebates, broker concessions and transportation cost reductions
  • Sterling Advisor Pat Davidson assisted the management team in restructuring the company’s sales and marketing efforts, providing customers with better coverage and merchandizing capabilities
  • In October 2016, Lipari completed a $260 million debt refinancing to recapitalize the existing structure on more attractive terms, and fund a distribution to the Company’s unitholders