BOSTON, MA– November 13, 2024 – New Heritage Capital (“Heritage”) is pleased to announce the successful exit of its investment in Continental Services (“Continental” or the “Company”). Continental was acquired by Morgan Street Holdings, LLC, an investment group focused on acquiring business services and consumer product companies.
Founded in Detroit, Michigan in 1989, Continental is the leading corporate foodservice provider in the Midwest, offering its clients technology-enabled vending, dining, markets, and catering options that maximize convenience while emphasizing a quality food experience. As one of the largest franchisees of the Compass Group, Continental Services has an excellent reputation serving diverse clients of all sizes and industries, with a footprint spanning across Michigan, Indiana, Ohio and into Pennsylvania and New York. The Company has more than 1,500 employees and operates 28 distribution centers across its footprint.
Heritage worked closely with the Continental management team to execute a comprehensive organic and inorganic growth plan that included ten acquisitions, improved operating efficiency and greater route density, and led to further diversification of its client base.
Matt Hubbard, CEO of Continental, said, “Over the last several years we have delivered significant growth through the acquisition of new territories within the Compass system, the optimization of our distribution model through data-driven technology solutions, and the application of high-impact food-at-work for employers of all sizes. Heritage was a great partner throughout that evolution and we could not be more excited to partner with the Morgan Street Holdings team to continue our journey over the long term.”
“When we invested in Continental, it was a strong business in the Michigan market, approaching corporate food service with unique culinary capabilities,” said Melissa Barry, Partner at Heritage. “Together with management, we have helped Continental to become an even stronger regional player utilizing industry-leading technologies and systems to serve customers across multiple states and end markets with the highest service and quality. We look forward to seeing the wonderful things Continental achieves in the future.”
Advisors
Lazard Frères & Co. LLC acted as financial advisor and Latham & Watkins, LLP and Taft Stettinius & Hollister LLP acted as legal advisors to Heritage and Continental. Metronome Partners, LLC acted as financial advisor and Reed Smith, LLP acted as legal advisor to Morgan Street Holdings, LLC.
Heritage is a Boston-based private equity firm with a more than twenty-year history of partnering with growing, middle market, founder-owned businesses. With its innovative investment structures like the Private IPO®, Heritage provides founders with a combination of liquidity and growth capital while allowing founders to maintain control of their business. With decades of experience at managing growth, Heritage gives its partners the strategic, operational and financial guidance to help its companies reach their growth objectives.
The above quote is provided by Matt Hubbard, CEO of Continental Services. Mr. Hubbard is not an investor in any New Heritage Capital fund and was not paid for the quote included above. However, due to his position at Continental, he may be inclined to have a favorable view of New Heritage Capital.
