One of the largest specialty food products distributors in the Midwest. Lipari offers its diverse base of customers, which are primarily independent and specialty grocery store chains, access to its vast selection of 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, meat and seafood. 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
- The company completed seven accretive add-on acquisitions during Sterling's ownership period and two accretive add-on acquisitions under a subsequent financial buyer's ownership that were sourced by management and Sterling.
- Sterling Advisor Pat Davidson assisted management with the integration of several acquisitions and developed an integration “blueprint” for future transactions.
- Sterling professionals were actively involved in acquisition due diligence as well as transaction structuring and financing.
- Sterling worked 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 262,000 square foot, state-of-the-art frozen warehouse facility as well as a 200,000 square foot in-house manufacturing operation, both adjacent to Lipari's existing distribution center.
- The new 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 took actions to drive organic revenue growth, which included: category and product additions, salesforce expansion and upgrade, and extension of geographic markets served.
- Sterling 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.