(LOS ANGELES) — Grocers Specialty Company has signed a letter of intent to acquire certain assets of J. Sosnick & Son, a wholesale distributor of candy, gourmet items and kosher food headquartered in South San Francisco. The transaction, which is expected to close in mid-August, involves the sale of Sosnick's gourmet and kosher food businesses only. Sosnick will focus on its candy businesses, where a major expansion is in development.
Grocers Specialty Company is the full-service specialty and gourmet product distribution subsidiary of Unified Western Grocers, Inc. When the Grocers Specialty transaction with Sosnick is completed, the acquisition will represent the third specialty foods company Grocers Specialty has purchased in the past 15 months. On May 29, 1999, Grocers Specialty Company purchased Hayward, Calif.-based Gourmet Specialties, a $53 million full-service distributor of gourmet and ethnic specialty food products and on June 30, 2000, Grocers Specialty completed its acquisition of Central Food Sales, a specialty foods distributor headquartered in Renton, Wash.
"This transaction adds to our ability to effectively and efficiently supply gourmet, specialty and ethnic food products to retailers throughout a 12-state region of the Western United States," said Ted Gardner, President of Grocers Specialty Company and Senior Vice President, Non-Foods and Specialty Products, Unified Western Grocers. "The combined purchasing power of Grocers Specialty, Gourmet Specialties, Central Food Sales and Sosnick allows us to provide outstanding value to retailers throughout the Western United States. In fact, in terms of real value to the retailer, no other specialty foods distributor in the West can match our infrastructure, personnel or product mix."
One of the highlights of the Central Foods Sales and J. Sosnick & Son deals, according to Gardner, is Grocers Specialty’s acquisition of the exclusive distribution rights to the Manischewitz label of quality kosher products in a territory that extends from Bakersfield, Calif. on the south to Alaska on the north.
J. Sosnick & Son will continue to operate its candy businesses under its current name and management. It is in the process of passing all management responsibilities to the family’s fourth generation and plans to maintain its main warehouse and office complex in South San Francisco. Plans also include the incorporation of new candy facilities, additional product selection and expanded geographic sales coverage.
"A sale to Grocers Specialty Company was an excellent business decision," said Myron Sosnick, President of J. Sosnick & Son. "Our candy business has grown exponentially over the last five years, and now we can focus on developing that side of the business even more effectively. That’s the future of J. Sosnick & Son."
This press release contains forward-looking statements with respect to benefits expected to be derived from the proposed acquisition. There are a variety of factors which could cause actual results to differ materially from those anticipated by the statements above. These factors are outlined in Unified's Form 10-Q and other interim reports filed with the Securities and Exchange Commission. Furthermore, Unified undertakes no obligation to update, amend or clarify forward-looking statements whether as a result of new information, future events, or otherwise.