Quirch Foods exploring sale, Reuters reports

Palladium Equity Partners is working with Goldman Sachs Group to sell Quirch Foods, which it acquired in 2018, according to Reuters.

Based in Coral Gables, Florida, U.S.A., Quirch Foods distributes and exports seafood, beef, pork, poultry, and other products to independent and ethnic grocers in the U.S. and Puerto Rico, U.S. national retailers, and Latin American export markets, in addition to operating distribution centers and cold-storage facilities. It distributes its seafood products under the Panamei Seafood brand.

New York City-based Palladium, which manages USD 3 billion (EUR 2.7 billion) in assets, expanded Quirch’s market reach via a series of growth initiatives, including expansion into new product offerings and geographies, and potential acquisitions in the food distribution industry, Palladium said. Quirch has grown from having USD 1 billion (EUR 900 million) in revenue in 2018 to USD 3 billion in 2020, following the acquisition of Butts Foods and its merger with Colorado Boxed Beef, a food distributor headquartered in Lakeland, Florida, U.S.A.

Palladium is seeking to offload Quirch for USD 1.5 billion (EUR 1.4 billion), including debt, Reuters reported on Monday, 1 May, citing sources familiar with the deal. That valuation is 10 times its 12-month earnings before interest, taxes, depreciation and amortization (EBITDA) of USD 150 million (EUR 136 million), the sources added. 

Palladium, Goldman Sachs, and Quirch did not respond to a request for comment from Reuters.

Quirch recently sold a warehouse in Miami, Florida, U.S.A. for USD 59 million (EUR 53.4 million), a cold-storage facility in Orlando, Florida, U.S.A. for USD 26 million (EUR 23.5 million), and a cold-storage facility in New Orleans, Louisiana, U.S.A. for an undisclosed sum.

In 2019, Panamei Seafood Marketing Director Jorge Roza told SeafoodSource Panamei was seeking to increase its output and selection of value-added products and would seek to expand in Brazil.

The company operates a fleet of nearly 500 refrigerated trucks and occupies more than 2.3 million square feet of distribution space in 23 facilities across 10 states and Puerto Rico, according to Commercial Property Executive.

Photo courtesy of Quirch Foods