GRAND RAPIDS — Gordon Food Service Inc. has signed an agreement to acquire an Alabama competitor.
The Grand Rapids company expects to close in 90 days on the acquisition of Birmingham-based Red Diamond Foodservice, according to a statement. Following the transaction, Gordon Food Service plans to use its Douglasville, Ga.-based distribution center to service Red Diamond’s customers.
The company is a division of the family-owned Red Diamond Inc., which makes and distributes a range of coffee and tea products, a business unit it will continue to operate.
Red Diamond opted to sell the growing foodservice business to concentrate on its coffee and tea sales. President and CEO Bill Bowron described Gordon Food Service as “strategically the best possible fit” for the foodservice business.
For Gordon Food Service, the move allows the company to expand its business in the southeast U.S., according to a statement.