The new company and management team will be led by David Burns, the current managing director of Fresh Direct, who will become chief executive of the new company, which will also operate under the Fresh Direct name, with M&J, Pauleys and Wild Harvest also retaining their brand names.
It will be jointly owned by Bain Capital and Nigel Harris. Current Fresh Direct owners Nigel and Colin Harris are expected to continue to take an active role in the new company and employees of M&J, Pauleys and Wild Harvest will transfer to the new company following TUPE consultations.
David Burns, Fresh Direct managing director, said: “When considering this opportunity, we needed to agree that it enhanced and added value to our business plans, giving due consideration to our customer requirements in a rapidly evolving market.
“I am, therefore, extremely excited at the decision we have arrived at. This opportunity stood out head and shoulders above other possibilities, was good for employees and provided broader opportunities for our customers.”
Ken McMeikan, Brakes Group chief executive, said: “I am delighted to be entering into this joint venture with Fresh Direct, because of the significant opportunities this will create for customers in what is the fastest growing part of the foodservices market.”
And Jeff Scherer from Bain Capital added: “Bain Capital is excited to now be associated with two leaders in the UK Food Service Industry – Fresh Direct and Brakes.
“As we got to know Fresh Direct and their leadership team, we were extremely impressed with the great quality of service Fresh Direct offered customers and the outstanding reputation the Fresh Direct team has across the foodservice market.”
The new company aims to create an ‘all-in-one’ fresh food destination for chefs and caterers, for their produce, fish and seafood, meat and fine dining product requirements.
Fresh Direct was first established as a family business, when John Harris, Nigel and Colin’s father, established local greengrocer H&H Fruiterers, with then-business partner Bill Hawkins, nearly 50 years ago. From its roots as a small shop in Bicester, making deliveries from the back of an Austin 3-tonne lorry, the family business has grown to become a market leader in fresh produce.
John Harris said: “We’ve come such a long way since we started out in 1966 and I think that this new venture is exactly the right move for Fresh Direct, our staff and our customers to take us into the next chapter of our story.”