Oct 11, 2006

Produce companies announce merger

Heeren Brothers and J.A. Besteman Co. announced Oct. 9 that they plan to merge, creating one of the largest family-owned produce wholesalers in Michigan.

The asset purchase will create a company with approximately 175 employees, three warehouses, a fleet of 40 trucks and the ability to serve customers throughout Michigan, northern Ohio and Indiana. The new company will continue to do business under both family names, which enjoy strong brand recognition among their customers.

Heeren CEO Hal Roy will continue as chief executive of the combined company. Dave and Steve Besteman, president and vice president of sales at J.A. Besteman, will serve the new organization in senior management positions.

“This merger brings together two good companies to make one great company,” Roy said. “We have been neighbors of J.A. Besteman for more than 60 years and, while we have been competitors, we have cooperated on numerous occasions to meet the needs of our customers.

“As longtime family-owned companies, Heeren and Besteman share a deep commitment to quality, customer service and an ethical approach to doing business. The combined company will strengthen our presence in Michigan, allowing us to expand our geographic reach and product mix to meet the needs of customers in an efficient and cost-effective manner.”

Dave Besteman agreed.

“We, too, are pleased to align our company with Heeren Brothers,” he said. “Market conditions have changed tremendously since both of our companies got their start, creating a highly competitive environment that is particularly challenging for small wholesalers.

“By joining together, we will be able to offer more products and services to our current customers, while positioning the company for further growth. This merger is a good business decision that will benefit both Heeren and Besteman and our employees.”

The transaction price for the sale, which will be finalized during the fourth quarter of 2006, was not disclosed. Heeren Brothers plans to retain the majority of employees from Besteman.

The newly combined company will offer:
• More than 250 varieties of fresh fruits and vegetables, including packaged salads and vegetable blends
• Full line of organic produce and specialty items, including herbs
• Full line of produce-related items, including salad dressings, croutons, dried fruit, processed garlic and other items
• Complete year-round floral program
• Gourmet and deli products through Heeren’s Gourmet Specialty of Michigan business unit. Launched earlier this year, Gourmet Specialty sells a wide variety of cheeses, meats, olives, pasta and related items
• Online ordering

Heeren and Besteman currently serve more than 400 retailers, specialty grocers, restaurants and other companies in Michigan, Indiana and Ohio from more than 140,000 square feet of warehouse space in Grand Rapids, Mich.

Heeren Brothers was established in 1933 and grew into a third-generation, family-owned wholesaler and distributor of fruits and vegetables. The addition of Gourmet Specialty in May added a new range of customers to its distribution mix. Historically, Heeren concentrated on grocers in western Michigan.

J.A. Besteman was established in 1922 and also grew into a third-generation, family-owned produce wholesaler and distributor. The company added organic produce and a floral program during the 1990s. Besteman enjoys a broad geographic reach, with customers throughout the northern Upper Peninsula and southeast Michigan, as well as in northern Indiana and Ohio.

“Our individual commitments to our customers will remain the same in the merged entity,” Roy said. “We will deliver fresh produce of exceptional quality at competitive prices. We are committed to providing on-time delivery, exceptional customer service and flexible solutions that meet the needs of our customers.”