Last updated on September 4th, 2018 at 09:19 am
Diversis Capital LLC, a Los Angeles, California-based private equity firm, has acquired New England distributor Dari Farms Ice Cream Co. Inc.
Headquartered in Tolland, Connecticut, Dari Farms is a full-service, direct store delivery (DSD) distributor serving more than 5,000 points of distribution. Financial terms of the transaction were not disclosed.
Founded in 1970, Dari Farms formed distribution partnerships with regional and national ice cream banners, while simultaneously expanding its reach to service retail outlets throughout southern New England. In the early 2000s, Dari Farms expanded into frozen foods and carries thousands of SKUs across ambient, refrigerated and frozen categories.
By coupling the traditional full-service DSD model with multiple temperature capabilities, Dari Farms says it has created a method for increasing sales and speed to market while decreasing out of stocks, stales and retailers’ labor costs.
“Dari Farms has a tremendous reputation as one of the top DSD distributors in New England. The management team has done a fantastic job of growing the business over the past few years, and we look forward to partnering with them over the next several years to invest in expanding the capabilities and geographic reach of the business,” said Kevin Ma, Diversis managing director.
Diversis is planning to take a multi-tiered investment approach to Dari Farms through add-on acquisitions, foodservice expansion, and infrastructure and technology improvements.
The company says it is considering additional acquisitions and growth opportunities both inside and outside the New England footprint, with “the collective goal of serving Dari Farms’ customers and vendor partners in a most convenient manner.”
Dennis Silva Jr., Dari Farms CEO, said, “It is with great pleasure that we announce this new partnership. Diversis brings to Dari Farms an extensive portfolio of operational and industry resources, combining direct-store-delivery knowledge with technological best practices. By integrating new technologies and expertise with the strengths of our existing management team and customer/vendor relationships, this collaboration is sure to enhance our capabilities and improve the experience of our customers.
“I am most excited about this news for three reasons. First, the deal allows Dennis (Sr.) and Dave (Sr.) to retire, albeit we look forward to their continued mentorship. Second, the great people who have been with Dari Farms for 10, 20, even 30-plus years will remain with the company. I will be serving as CEO to the new organization, my cousin Dave Silva (Jr.) as COO, while Tom Allanach will hold the position of CFO. Lastly, and as previously mentioned, this deal infuses DSD experience, resources and fresh perspective into the business. We could not imagine a better fit than the enthusiastic and experienced professionals at Diversis, and both teams are eager to hit the ground running with a united, growth-oriented focus.
Founded in 2013, Diversis Capital is a North American private equity firm with a focus on carve-outs, standalone deals and special situations in the lower and middle markets.
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