Leading UK foodservice supplier Fresh Direct has acquired Skelmersdale-based Parkfresh, to become its second Fresh Direct Local operation.
“Founded nearly 20 years ago by Boyd Park, Parkfresh is a terrific business to add to our bow - a slick, profitable operation with some very strong employees who will complement our own capabilities,” said Fresh Direct chief executive Nigel Harris.
The two companies, both of which have already been chosen as finalists in this year’s Re:fresh Awards, have developed along similar lines, Park told FPJ: “I built the company up from scratch over 20 years into a chain of greengrocery stores, before moving into foodservice supply 10 years ago. Since then, we have grown quicker than anyone else in the North West. We had pretty much saturated the region and, with the help of a £5 million loan from Royal Bank of Scotland, I was looking at acquisition opportunities, as well as a joint venture in Birmingham.”
Park met Harris when both were finalists in the RBS Entrepreneurial Challenge - Parkfresh in the northern category, and Fresh Direct in the southern equivalent. “Nigel suggested that I sell Parkfresh to Fresh Direct and take a seat on its board, which meant that I would still have control of the company going forward,” he said.
“Joining Fresh Direct Local means the blueprint that Parkfresh has established within the North West for regional fresh produce foodservice can now be rolled out nationally. The Local concept will explode the myth that many people hold of foodservice being mediocre and non-extensive, and myself and our 90 loyal, highly trained employees look forward to moving forward as Fresh Direct Local, North West.”
While money has changed hands, Harris is keen to liken the process internally to a merger. “Parkfresh has a £10 million turnover and Fresh Direct is a £100m company. It would have taken me a long time to reach that level, and this opens up a whole raft of opportunities,” said Park. “My managing director at Parkfresh, Abby Rycraft, becomes md of Fresh Direct Local, North West, and the rest of the staff will continue as before, which was extremely important to me.
“Fresh Direct does not want to outsource; it wants the same local staff, drivers and growers. This is a big growing area, and we will continue to source local potatoes, carrots and the rest as before.”
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