Palm Beach Capital taps 2011 vehicle for new convenience distribution deal

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Palm Beach Capital has boosted its exposure to the convenience distribution sector through a new investment.

The firm has tapped its $133.5m third fund from 2011 to buy Consumer Products Distributors, which does business as J Polep Distribution Services, and Rachael’s Food.

J Polep and Rachael’s Food has been in the distribution business for over 120 years, and is currently ranked as the 7th largest wholesaler to the US convenience store industry.

Palm Beach partner Mike Schmickle said, “Our strategy is to invest in solid management teams and assist them in their long-term strategic growth plans.

“The management team at J Polep and the family culture it exemplifies with its customers, vendors and employees, embodies the values that we seek in a partner.

“Having made our initial venture into the convenience distribution space in 2014 with our investment in New York based Harold Levinson Associates, we have identified the industry as one that is uniquely positioned for growth and consolidation.

“J Polep and HLA will both become independent members of our new convenience distribution division and we intend to add additional members in the future.”

Palm Beach is also currently investing out of its fourth flagship fund, which AltAssets revealed was being raised in 2016.

The firm was eyeing up to $150m for Fund IV acccording to a US SEC filing from the time, but is yet to publicly announce a final close date or total.

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