San Francisco Equity Partners forms Xceed Foodservice Group with investment in Sales Concepts and Donovan Food Brokerage
Brown Gibbons Lang & Company (BGL), a prominent investment banking firm, has facilitated a strategic investment by San Francisco Equity Partners (SFEP) into Sales Concepts, Inc. and Donovan Food Brokerage. This investment has led to the creation of Xceed Foodservice Group, aiming to strengthen its position within the $1 trillion U.S. foodservice industry. The deal was orchestrated with BGL’s Food and Beverage investment banking team serving as the exclusive buy-side financial advisor.
SFEP, a private equity firm known for its focus on consumer-oriented companies, initiated this venture to tap into the various segments of the foodservice market, which includes restaurants, school districts, hospitals, hotels, and other venues. Xceed Foodservice Group is set up to partner with leading regional independent brokerage firms that specialize in the foodservice ecosystem. By maintaining the individual identities, management teams, and operational autonomy of each partner firm, Xceed plans to ensure localized and effective market penetration.
The U.S. foodservice industry, with its complex and localized networks, offers significant opportunities for growth, particularly for suppliers looking to expand their reach. Through its brokerage partners, Xceed will provide critical sales and marketing services aimed at fostering this growth.
Daniel Gomez, Managing Director at BGL and leader of the Food and Beverage investment banking team, brings extensive experience and sector knowledge to the table. His team’s involvement was crucial in navigating the complexities of this transaction, which promises to leverage global supply chain sourcing, contract manufacturing, processing, distribution, and wholesale practices to boost Xceed’s market presence.
The formation of Xceed Foodservice Group by SFEP highlights a strategic move to consolidate and streamline foodservice brokerage services across significant regional markets. This structure not only enhances operational efficiencies but also bolsters the market reach of food suppliers. As the foodservice industry continues to evolve, such partnerships are pivotal in harnessing the full potential of the fragmented and expansive market landscape.