National Convenience Distributors Acquires Southeast Company
FARMINGDALE, N.Y. — National Convenience Distributors (NCD), the fourth largest wholesale distributor to the convenience store industry, is acquiring Colonial Wholesale Distributing Inc., one of the Southeast region's largest full-line wholesale distributors to the convenience and grocery store industries. Financial terms were not disclosed.
Tampa, Fla.-based Colonial Distributing will join NCD as a newly created division and expand NCD's geographical reach along from Maine to Florida. With the deal, NCD now services 13 states with annual revenues approaching $3.5 billion.
"The merger of Colonial Distributors with National Convenience Distributors greatly enhances the capabilities and product offerings that Colonial can now provide its customers," said Yasin Saad, founder of Colonial. "We built the state-of-the-art Colonial facilities with significant growth in mind. Now, as part of a larger organization, the opportunities throughout Colonial are greatly increased and we look forward to continuing impressive growth."
Farmingdale-based NCD has a differentiated product offering of more than 20,000 SKUs. The company represents the unification between Allen Brothers Wholesale Distribution, Century Distributors, Colonial Distributing, Harold Levinson Associates, J. Polep Distribution, Rachael's Food Corp. and Wustefeld Candy.
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"The fragmented convenience wholesale distribution industry continues to consolidate and I'm proud that NCD is the leader when it comes to acquiring and integrating businesses in our market. Colonial is an amazing business and we are fortunate to add them to the NCD family," said NCD's CEO Jeff Allen.
"With this transaction, NCD not only continues its geographic expansion along the east coast, it also strategically positions us to acquire additional industry leaders and strengthens our overall business relationships with our customers, vendors and employees," he added.
Colonial Distributing was established in 1998 by Saad, who, alongside his family and partner Samer Dalha, grew it into one of the leading c-store distributors in Florida and the Southeast. Colonial specializes in drinks, candy, tobacco and vape products, health and beauty, and automotive supplies. In addition to delivering tens of thousands of SKUs to more than 5,000 retail locations, Colonial is one of the only distributors in the region offering a wholesale warehouse and "cash and carry" locations where customers can shop the warehouse on the spot to meet their immediate market needs.
Carl Marks Securities LLC, an affiliate of middle market investment bank Carl Marks Advisors, guided Colonial Distributing through the sale.
"Colonial created a very successful, profitable business model with the combination of direct delivery and cash-and-carry warehouse shopping for its customers," said Warren H. Feder, partner at Carl Marks. "Yasin found that when the retailers came to the warehouse, they actually purchased more than their usual delivery. This model, paired with its strong geographic footprint in Florida, made Colonial a very attractive, strategic addition for NCD."