Xceed Foodservice Group (“Xceed”), a portfolio company of San Francisco Equity Partners (“SFEP”), has announced a strategic investment in the foodservice brokerage division of Total Source. This significant move expands Xceed’s presence in the Southwest region of the United States, covering New Mexico, Arizona, Colorado, Montana, and Nevada. This investment is the seventh acquisition for Xceed since its establishment last year, marking another milestone in its aggressive growth strategy. While the financial terms of the transaction remain undisclosed, it is important to note that Total Source’s restaurant equipment business is not part of the deal and will continue to operate independently, maintaining collaboration with the Xceed platform.
Total Source’s management team will retain operational control of the business and has also maintained a significant equity stake in Xceed Foodservice Group.
This decision reflects the collaborative nature of the partnership and underscores the shared vision between the two organizations. Terry Hughner, the owner of Total Source, expressed his enthusiasm for the deal, stating, “Our service-oriented approach to partnership with our customers aligns perfectly with the culture at Xceed, and we are delighted to expand our service offering and geographic reach as part of the Xceed family.”
This investment represents Xceed’s second major move in the Southwest region, further solidifying its position as a leading foodservice brokerage platform. Darin Pounds, CEO of Xceed, highlighted the significance of the deal: “The investment in Total Source is Xceed’s second in the Southwest and positions us to help more food manufacturers achieve their national growth goals. Total Source’s team has a relentless focus on meeting their customers’ needs with a high-touch service approach. We are delighted to welcome their talented employees and customers into the Xceed family.”
The strategic alignment between Xceed and Total Source is rooted in a shared commitment to exceptional customer service and a forward-thinking approach to the foodservice industry. Xceed’s acquisition strategy is designed to enhance its capabilities across various regions and service categories, ultimately creating a robust, nationwide platform that supports food manufacturers in reaching their growth objectives.
Expanding in the Southwest
The Southwest region is a dynamic market for the foodservice industry, characterized by its diverse demographic and cultural influences. With its investment in Total Source, Xceed gains a foothold in key states such as New Mexico, Arizona, Colorado, Montana, and Nevada. These states present significant opportunities for growth, given their expanding populations and vibrant culinary scenes. By integrating Total Source into its platform, Xceed is better positioned to provide localized support to food manufacturers and distributors, helping them navigate the unique challenges and opportunities in the region.
Total Source’s longstanding reputation in the Southwest market has been built on a foundation of trust, reliability, and high-quality service. The company’s team of experienced professionals has cultivated strong relationships with manufacturers and customers alike, making it an ideal partner for Xceed. This partnership will allow Xceed to leverage Total Source’s expertise and local market knowledge while providing additional resources and support to drive growth.
A Focus on Service Excellence
At the heart of Xceed’s business model is a commitment to service excellence. The company’s approach is centered on understanding and addressing the unique needs of its customers, from food manufacturers to distributors and end-users. By prioritizing a high-touch, service-oriented strategy, Xceed has differentiated itself in the competitive foodservice brokerage industry. This focus on customer satisfaction is mirrored by Total Source, whose team has consistently demonstrated a dedication to meeting and exceeding client expectations.
Terry Hughner, the owner of Total Source, emphasized the cultural alignment between the two organizations. “Joining the Xceed family allows us to enhance our service offering and expand our reach while staying true to our core values. We look forward to collaborating with Xceed to deliver even greater value to our customers,” he said. The partnership is expected to unlock new opportunities for innovation and efficiency, benefiting both organizations and their stakeholders.
Strengthening Xceed’s National Platform
Since its inception, Xceed has pursued an ambitious growth strategy aimed at building a comprehensive, national platform for foodservice brokerage. With seven investments to date, the company has rapidly expanded its geographic footprint and service capabilities. Each acquisition has been carefully selected to align with Xceed’s vision of becoming a trusted partner for food manufacturers seeking to scale their operations across the United States.
The addition of Total Source represents a significant step forward in this journey. By establishing a stronger presence in the Southwest, Xceed can offer more comprehensive support to its clients, helping them achieve their national growth goals. The partnership also underscores Xceed’s commitment to fostering long-term relationships with its partners. By allowing Total Source’s management team to retain operational control and equity ownership, Xceed ensures continuity and stability while integrating the business into its broader platform.
Collaboration and Innovation
One of the key strengths of the Xceed-Total Source partnership is the emphasis on collaboration and innovation. By combining their resources and expertise, the two organizations are well-positioned to develop new solutions and strategies that address the evolving needs of the foodservice industry. This includes leveraging technology to enhance efficiency, exploring new market opportunities, and fostering a culture of continuous improvement.
The transaction also highlights the role of private equity in driving growth and innovation in the foodservice sector. As a portfolio company of San Francisco Equity Partners, Xceed benefits from access to capital, strategic guidance, and a network of industry connections. These resources have been instrumental in supporting Xceed’s rapid expansion and enabling it to execute its growth strategy effectively.
Looking Ahead
The investment in Total Source is a testament to Xceed’s commitment to building a best-in-class foodservice brokerage platform. As the company continues to grow, it remains focused on delivering exceptional value to its customers and partners. By expanding its geographic reach and enhancing its service capabilities, Xceed is well-positioned to navigate the complexities of the foodservice industry and capitalize on emerging opportunities.
For Total Source, the partnership represents an exciting new chapter in its history. As part of the Xceed family, the company will have access to additional resources and support, enabling it to enhance its service offerings and achieve new levels of success. The collaboration between the two organizations is expected to drive growth and innovation, benefiting customers, employees, and stakeholders alike.
In conclusion, Xceed’s investment in Total Source marks a significant milestone in its journey to becoming a leading foodservice brokerage platform. By aligning with like-minded partners and maintaining a relentless focus on customer satisfaction, Xceed is paving the way for continued growth and success in the competitive foodservice industry.
