Bell-Carter acquires J.L. DeGraffenreid

Lafayette, Calif.-based Bell-Carter Foods Inc. announced Jan. 15 the acquisition of the operating assets of J.L. De-Graffenreid & Sons LLC of Springfield.

DeGraffenreid's owner, D. G. Foods LLC, was looking for a buyer, according to Division President Jon Gallo.

"We were owned by an in-vestment group, most of whose members were in Wisconsin or Chicago, and they decided they wanted to get out of the pickle business so they put us up for sale," Gallo said.

U.S. Bancorp Piper Jaffray served as sell-side adviser to D. G. Foods in the deal which closed Jan. 2. The purchase price was not disclosed.

DeGraffenreid was formed in 1944 and operates a 72,500-square-foot facility that pro-cesses approximately 65 million pounds of pickles a year. Most of the cucumbers used at the plant about 75 percent are grown in southwest Missouri.

And times are good in the pickle business. According to Gallo, 2001 "was a real good year. We had about a 25 percent increase in sales last year. We're looking for another 20 percent on top of that this year."

"It's boom times here," he added.

With the acquisition, DeGraffenreid will expand its products' reach.

"There will be the opportunity for some wider spread distribution," Gallo said. "Bell-Carter is the Lindsay Olive brand, and they're all over the country ... we are all over the country with a portion of our business, but with other parts of our business we have some opportunity to expand if we can tie into their distribution system."

Otherwise, Gallo said, he expects business to continue as usual.

"We still will run mostly auton-omously like we have and be part of a bigger food company, which is the change for us and we think a change for the better," he said.

In terms of staffing, "The salaried staff, at least for the moment, looks like it will remain the same. We've been adding hourly help right along, and I think we still have a few openings," Gallo said. At last count, the company employed 88.

Gallo continues to serve as president, but said he expects to retire sometime this year. However, he plans to stay with the company on a consulting basis.

J. L. DeGraffenreid & Sons was founded in 1944. It was a family-owned corporation until 1973 when it was sold to Capitol Foods, which later became Vincent Food Industries Inc. In 1998, DeGraffenreid was sold to D. G. Foods LLC.

Established in 1912, Bell-Carter Foods produces more than 10 million cases of olives annually. It is a family business and is now run by third-generation family members.