Associated Wholesalers Inc. (AWI), the Robesonia, PA based wholesale co-op, announced on August 22 that, in conjunction with its sale process, it has received and is evaluating offers from potential buyers to acquire the assets of AWI and White Rose. AWI said it will carefully evaluate these offers as well as any additional offers received with its financial and legal advisors.
The company also noted that it makes no assurances that these discussions will result in any transaction or on what terms any transaction may occur. AWI added it does not intend to comment unless and until an agreement has been reached.
In making the announcement, the company said: âAs it moves through this process, AWI remains focused on running its business efficiently and providing its customers the competitive pricing and outstanding service and support they expect from AWI.â
Lazard Middle Market is serving as its financial advisor, and Carl Marks Advisors is serving as restructuring advisor to AWI. Saul Ewing LLP and Rhoads and Simon LLP are serving as legal advisors.
The restructuring process began on June 13, when AWI announced its intention to sell its White Rose unit. On that same date, the co-op announced that veteran CEO Chris Michael had retired and that wholesale industry veteran Matt Saunders, who had been with AWI for two years, would become chief executive of the company.
As the process continued, sources told us that both White Rose and parent company AWI would be considered for sale. In the past six weeks, there have been several key changes, including the departure of Joe Fantozzi, president of the White Rose division, and the announcement that a key White Rose customer, Krasdale Foods, will be switching to Bozzutoâs as its supplier for frozen foods and dairy products. Additionally, RMG, whose members operate Thriftway and Shop ân Bag stores in the DelawareValley, has signed a contingency plan with Bozzutoâs, which will become a secondary wholesaler to their business.
