UNFI to Acquire Tony’s Fine Foods

United Natural Foods Inc. (UNFI) has entered into a definitive agreement to acquire Tony’s Fine Foods, a West Sacramento, Calif.-based food distribution company with an 80-year history, according to reports in the Sacramento Bee.

Providence, R.I.-based UNFI, which distributes more than 65,000 organic and specialty food products throughout the United States and Canada, will operate Tony’s as a wholly owned subsidiary upon completion of the nearly $200 million deal.

The newspaper reported the purchase price for the business and related real estate is expected to be about $195.3 million and will consist of approximately $187.8 million in cash and about 112,000 shares of stock.

Founded in 1934 by the Anthony Ingoglia family, Tony’s products are sold primarily to retail and specialty grocers, foodservice customers and other distribution companies. The local company distributes perishable food products – including meats, cheese, deli items and bakery goods – throughout the western United States, plus Alaska and Hawaii. For its fiscal year ended Sept. 30, the privately held Tony’s amassed $714 million in net sales, according to UNFI.

Karl Berger, Tony’s Fine Foods’ co-president and part of the third generation of family managers, said in a statement, “We are thrilled to become part of UNFI, one of the leading natural, organic and specialty distributors in the U.S. and Canada, while maintaining our West Coast distribution and logistics network.”

UNFI said acquiring Tony’s Fine Foods will enable the company to continue expanding its national product offerings. “We … look forward to working with the entire Tony’s Fine Foods team of professionals as we build upon their more than 80 years of marketing, logistics and distribution excellence to continually deliver exceptional customer service and drive future growth,” said Steven Spinner, UNFI president and CEO, in a statement.

According to the Sacramento Bee, Anthony “Tony” Ingoglia Sr., who died in 2010 at 98, started what would become a major Northern California food distribution business with his wife, Adele. Working from a small truck that doubled as his warehouse, Ingoglia began distributing Italian-style salami and cheese to grocery stores. The company eventually grew to employ more than 600 and operates from a 120,000-square-foot facility.