SpartanNash and Caito Foods Service announced they have entered into a definitive agreement under which SpartanNash will acquire certain assets of Caito Foods Service (“Caito”) and Blue Ribbon Transport (“BRT”). Under the terms of the agreement, SpartanNash will acquire Caito’s produce distribution business, fresh cut fruits and vegetables business, the company’s newly constructed Fresh Kitchen facility which is designed to process and package fresh-prepared foods, and the logistics business of BRT.

The acquisition should strengthen SpartanNash’s product offerings to its existing customer base by expanding into the fast-growing freshly prepared centerplate and side dish categories.

Founded in Indianapolis in 1965, Caito Foods Service is a leading supplier of fresh fruit and vegetables to grocery retailers and food service distributors across 22 states in the Southeast, Midwest and Eastern United States. Caito and BRT, which generate combined annual revenues in excess of $600 million, currently service customers from facilities in Indiana, Ohio and Florida. Caito also has a central fresh cut fruit and vegetable facility in Indianapolis and is completing construction on its new 118,000 square foot Fresh Kitchen facility, also in Indianapolis. The $32 million Fresh Kitchen will process, cook and package fresh protein-based foods and complete meals; it is expected to be fully operational in the first quarter of 2017. The company offers temperature-controlled distribution and logistics services throughout North America through its affiliate Blue Ribbon Transport.

“We are excited about this opportunity to expand our presence in serving some of the fastest-growing categories in grocery, including fresh produce, value-added fruits and vegetables and protein-based prepared food,” said Dennis Edison, SpartanNash’s CEO and Chairman of the Board. “Caito Foods Service is a premier distributor with best-in-class food processing facilities, including its new Fresh Kitchen. In addition, Caito’s service area is complementary to our current distribution footprint, and we look forward to serving customers in new areas in addition to enhancing our offerings to existing customers. In short, this acquisition further strengthens our platform and enhances our ability to help our customers serve their consumers, benefiting our associates and the communities we serve, as well as delivering value for shareholders.”