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Kelso Fund X Announces Investment in Individual FoodService

November 22, 2019

Kelso is pleased to announce that on November 22, 2019, we acquired Individual FoodService (“IFS”).

IFS is a leading distributor of foodservice disposables (“FSD”), janitorial & sanitation supplies (“Jan-San”), and non-perishable food products to over ~4,500 customers in the southwestern United States, with a primary focus on the California market. IFS serves as a supply chain partner to its customers by providing a comprehensive portfolio of low-cost, consumable items, as well as value-added consulting expertise and inventory management. As a regional market leader, IFS benefits from several sources of differentiation, including scale, geographic reach, and breadth of product offering, among others, allowing it to maintain entrenched relationships with its customers, which include quick service restaurants, independent restaurants, healthcare facilities, universities, and government institutions. IFS has achieved impressive growth historically and is well-positioned to capitalize on significant future organic and inorganic growth opportunities.

Kelso has led an active and focused sourcing effort in the broader distribution industry for several years and developed an investment thesis on the FSD / Jan-San market. In doing so, we have evaluated numerous opportunities in the sector and have established deep relationships with former executives and advisors. Given our firm’s distribution expertise and targeted interest in FSD / Jan-San distributors, we developed a close relationship with Sole Source Capital, resulting in the opportunity for Kelso to diligence the business and negotiate a transaction on an exclusive basis. Throughout the exclusivity period, Kelso brought to bear industry leading executive resources and a view on how to accelerate growth, which resulted in the IFS management team’s confirmation of Kelso as a preferred partner for the Company’s next stage of growth.