A long-established North East fresh produce wholesaler has been acquired by a US food technology company as part of its international expansion.
Team Valley-based JR Holland, which generates annual revenues of around £35m and employs more than 120 people, has been acquired by San Francisco-headquartered GrubMarket in a landmark cross-border deal.
The transaction represents GrubMarket’s first acquisition in the UK and will see JR Holland gain access to its technology platform, including supply chain software and artificial intelligence technology.
Founded by John Holland in the early 1980s, JR Holland has been supplying fresh produce across the North East and beyond for more than 43 years. Its customers include restaurants, hospitality venues, foodservice businesses, schools, NHS trusts and other public sector organisations.
The company will retain its JR Holland brand and existing management team following the acquisition.
John Holland, founder of JR Holland, said: “Joining GrubMarket marks an exciting new chapter for JR Holland, our employees and our customers.
“GrubMarket recognised the strength of the business and our management team from day one, and I am confident that, with their backing, technology and resources, JR Holland is exceptionally well positioned for its next phase of growth.”
GrubMarket combines proprietary technology with acquired food wholesale and distribution businesses, with the aim of supporting the digitisation of the global food supply chain.
Its technology will be introduced at JR Holland to support the digitisation of operations, improve supply chain efficiency and enhance the customer experience.
Mike Xu, chief executive officer of GrubMarket, said: “JR Holland has built an outstanding legacy over more than four decades, with strong customer relationships, high-quality operations and a dedicated team.
“We are thrilled to welcome JR Holland into the GrubMarket family through our first acquisition in the UK.”
He added that expansion into the UK represented “an important milestone” in GrubMarket’s international growth strategy, with the group planning to support JR Holland through its technology, capital and global resources.
North East-based RG Corporate Finance (RGCF) advised John Holland on the transaction, working alongside colleagues from across RG’s wider advisory business and the wider professional advisory team.
Corporate Finance Partner Nick Johnson led the deal, supported by Corporate Finance Managers Euan Mulholland and Andy Alexander. Tax Partner Simon Whiteside, who has advised JR Holland for many years, and Tax Director Simon Hopwood of RG Business Tax also supported the transaction.
Nick Johnson said: “JR Holland is a fantastic North East business with an outstanding reputation built over more than four decades.
“GrubMarket’s decision to make JR Holland its first UK acquisition is a strong endorsement of the business John has built and provides an exciting platform for its next phase of growth.”
John Holland added: “I am incredibly proud of what we have achieved over more than four decades and would like to thank RG Corporate Finance and our wider advisory team for their support throughout the transaction.”
Legal advice to JR Holland’s shareholders was provided by Philip Ashworth, Nicole Waldron, Grace Hansen and Kirsty Barby of Andrew Jackson Solicitors, with additional legal advice from Ward Hadaway and Womble Bond Dickinson.
US legal advice to GrubMarket was provided by O’Melveny Myers Smith, while WilliamsMarston undertook financial due diligence and Deloitte provided tax due diligence.
Johnson added: “It has been a pleasure to advise John throughout the transaction and to work alongside colleagues across RG and the wider advisory team to deliver a successful outcome.”
