Banta Foods sells to Reinhart FoodService

CEO and President Chuck Banta, who nearly two decades ago bought the 103-year-old company from his father, the late Charles T. Banta, said he’s been in talks with Reinhart for about a year and felt the time to sell was right because of increasing consolidation in the food-service industry. In 2007, Reinhart was the fifth-largest privately held broadline food service distributor in the United States, according to the ID Report, an e-magazine covering the food-service distribution industry.

“I just kind of looked into the future and saw a lot of landmines out there, and it looked a little cloudy to me,” he said. “Our industry is in somewhat of a flux.”

Banta said his company fits logistically into Reinhart’s distribution area, which covers about 35,000 customers in the Midwest, including Burger King, Subway and a number of independent operators, schools and hospitals. Banta Foods has national and regional clients, such as Panera and Applebee’s, in 10 states.

Springfield-based Andy’s Frozen Custard has been a Banta Foods customer for three years, and Andy’s President Andy Kuntz was less than thrilled to hear that Reinhart had acquired Banta Foods.

“They were big enough to handle our needs, and they were a small enough company we could go and talk to Chuck Banta,” Kuntz said. “I think Chuck truly cares. I think he cares about what’s wrong and how he can make things better. And if you’ve got a problem, I really felt that Chuck would go the extra mile to make things right.”

While Kuntz doesn’t expect too much to change, he said Andy’s would seek out a different distributor if the company experiences any problems obtaining the specialty products it needs in a timely manner.

“My gut feeling is that will stay the same,” Kuntz said. “Obviously, if things go south, we’re going to make a change.”

Banta would not disclose a sale price, and Reinhart FoodService executives CEO Mark Drazkowski and President Boyd Jordan, both of whom were traveling, declined interview requests. Jordan did, however, explain in an e-mail why Banta Foods appealed to Reinhart.

“The culture of  the Banta organization is very much like that of Reinhart FoodService – an independent distributor that is customer- and employee-centric, and focused on growing and executing at a very high level for it’s customers,” Jordan wrote.

Banta Foods will retain its name, most or all of its 200 employees and its Springfield operations at 1620 N. Packer Road, and it will become a division of Reinhart FoodService, Banta said. Banta will retain his title as general manager and lead the Banta Foods division with Assistant Division Manager Rick Sweet. The Banta Foods distribution center in Springfield will become Reinhart FoodService’s 19th U.S. location.

Despite rising fuel costs and a consolidating industry, Banta Foods hasn’t lost momentum.

The company in March was named the area’s third-fastest growing business at Springfield Business Journal’s Dynamic Dozen awards, with 38 percent revenue growth between 2005 and 2007. Revenues last year were $197.6 million, up from $172.6 million in 2006. The company also garnered Dynamic Dozen awards in 2007 (No. 11), 2006 (No. 7) and 2004 (No. 2).

Still, Reinhart FoodService’s size – its Rosemont, Ill.-based holding company, Reyes Holdings, is the 24th-largest private company in the United States, according to Forbes – will bring Banta Foods to a new level.

“It just gives us a bigger toolbox to work out of,” Banta said. “It gives us a lot more horsepower going out into the future.”

Reyes Holdings, which also serves Central and South America, acquired Reinhart in 2005. In 2006 and 2007, Reinhart acquired five companies and their distribution centers in Ohio, Florida, Georgia, Vermont and Massachusetts, according to www.reinhartfoodservice.com.

Banta History

Charles T. Banta owned Springfield-based Banta Foods Inc. for 27 years before dying in February 2007 at age 86.

Banta was a Missouri State University graduate and a World War II naval fighter. In 1945, he married into the Jezzard family, owners of what was then called W.H. Jezzard & Sons.

Banta began working at the company, making his way up to general manager, and bought the business in 1962. He changed its name to Banta Foods in 1984. Banta’s son, Chuck, bought the food-service company, which now employs about 200, in 1989.

In 2006, Banta Foods established BFI Trucking to serve its regional and national clients, which include Panera Bread and Applebee’s, in 10 states.[[In-content Ad]]