Lipari Foods’ Interests Sold to H.I.G. Capital

H.I.G. Capital, a private equity firm, has acquired Sterling Investment Partners’ interests in Lipari Foods Operating Co. H.I.G. plans to partner with the Lipari family and the current management team to grow distribution and manufacturing. Terms of the transaction were not disclosed.

“We are very excited about partnering with H.I.G. to support Lipari’s strategic growth plan. The company continues to have numerous opportunities to expand, and H.I.G.’s experience and resources, particularly around M&A, will help us continue our successful growth trajectory. We remain committed to providing outstanding service to our longstanding blue-chip customers,” said Thom Lipari, president and CEO of Lipari.

Over the past 18 months, Lipari has acquired Pennsylvania-based specialty deli company Heagy Foods, including the Guernsey’s Gift brand; the Michigan-based Mediterranean food business of Jerusalem Foods, including the Sahtein brand; the cheese cutting and packaging business of Jim’s Cheese LLC, of Waterloo, Wis.; and several assets of Dairy Fresh Foods Inc., including the Dairy Fresh brand.

Warren, Mich.-based Lipari, is a grocery distributor specializing in perimeter departments, specialty and branded food products, and serves more than 6,300 customers throughout the Midwest. The distributor generates about $1 billion in net sales out of its 725,000-square-foot distribution and food-manufacturing facility.

“Lipari is an impressive platform that has grown significantly over the years by expanding upon its Midwestern roots,” added Justin Reyna, managing director at Miami-based H.I.G. “We are very excited to partner with the Lipari management team, who has a proven track record of profitable growth. The company’s significant customer value proposition, diverse product portfolio and unparalleled distribution capabilities uniquely position it to capitalize on growth opportunities within the food distribution, import and manufacturing markets. We look forward to supporting Lipari and investing in both organic and acquisition-driven growth in its next stage of evolution.”