J. Polep Distribution Services Acquired by Private Equity Firm

WEST PALM BEACH, Fla.— Palm Beach Capital Fund III LP is growing its investment in the convenience distribution space.

In its recent move, the West Palm Beach-based private equity investment firm made an investment in Consumer Products Distributors LLC, which does business as J. Polep Distribution Services, and Rachael's Food LLC, collectively known as J. Polep.

J. Polep has been in the distribution business for more than 120 years and over the past several years, the company has expanded product lines to include fresh sandwiches, salads and grocery items and has added programs and value-added services to better service the convenience store retailer, according to the company.

"We are excited about the future growth of J. Polep Distribution Services and our partnership with Palm Beach Capital. Our focus will remain our steadfast dedication to the customers we service and to the products they deliver, with the goal of making sure each of our customers and vendors achieve long-term success," said Eric Polep, president and CEO of J. Polep.

"Business will run as usual at J. Polep and this new partnership with Palm Beach Capital will only enhance our capabilities and unparalleled customer service," he added.

Palm Beach Capital's investment in J. Polep, coupled with its previous investment in Harold Levinson Associates (HLA), creates the fifth largest c-store distributor in the country with a combined $2.7 billion in revenues.  

It is now the largest distributor focused exclusively on the northeast United States.  

"Knowing that Palm Beach Capital believes in our family culture and the philosophies we carry, has made this partnership extremely reassuring. We believe in the value of commitment to our people, while creating opportunities for our clients, team and the industry, and nothing is going to change that," said Jeff Polep, chairman of J. Polep.

Financial terms were not disclosed. 

"Our strategy is to invest in solid management teams and assist them in their long-term strategic growth plans. The management team at J. Polep and the family culture it exemplifies with its customers, vendors and employees, embodies the values that we seek in a partner," said Mike Schmickle, partner at Palm Beach Capital.

"Having made our initial venture into the convenience distribution space in 2014 with our investment in New York-based Harold Levinson Associates, we have identified the industry as one that is uniquely positioned for growth and consolidation," he added. "J. Polep and HLA will both become independent members of our new convenience distribution division and we intend to add additional members in the future." 

Founded in 1898, Chicopee, Mass.-based J. Polep Distribution Services is a leading distributor to the convenience and grocery store industry by providing candy; snack items; fresh, frozen and refrigerated foods; cigarettes and cigars; and coffee products to more than 6,000 customers located throughout the Northern United States. The company services its customers from seven strategic distribution and cross-dock centers located in Massachusetts, New Hampshire, Connecticut, New York, Rhode Island and Pennsylvania.

Palm Beach Capital is a private equity investment firm focusing on high growth investment opportunities and partners with management teams in middle market management buyouts, recapitalizations and growth equity investments.