Mid-Nite Snax Acquires Gourmet Gems
January 19, 2010
Completing the first of what could be several deals, supplier Mid-Nite Snax (asi/71685) has purchased the assets of Gourmet Gems (asi/57874). Financial terms of the deal were not disclosed. "We're coming off a very successful holiday season and we're going to stay aggressive," says Craig Fraum, executive vice president of Mid-Nite Snax. "We want to continue to grow in this economy."
Roughly one month ago, executives at Gourmet Gems approached Mid-Nite Snax to gauge interest in an asset purchase. After a short period of negotiation, a deal was finalized last week. According to Fraum, Gourmet Gems will remain a separate product line and its Web site will be unchanged. Already, Mid-Nite Snax is filling orders for Gourmet Gems' products. "We're expecting truckloads of their stuff," Fraum says. "We'll be taking on their whole operation here."
Employing about 100 people, Mid-Nite Snax generates annual revenues of around $10 million, according to Fraum. With an expanding company that offers products that range from gum to coffee to luxury snack towers, Fraum anticipates more acquisitions by Mid-Nite Snax in 2010. "We're going to be the largest food supplier in the industry," Fraum says.