PAK Quality Completes Recapitalization with Cross Rapids Capital

SAN ANGELO, Texas and FORT WORTH, Texas, Jan. 2, 2024 /PRNewswire/ -- PAK Quality Foods, LLC ("PAK Quality Foods") and D Bar Cold Storage, LLC dba FrigiServe ("FrigiServe" and collectively with PAK Quality Foods, the "Company" or "PAK Quality") announced today that they had completed an equity recapitalization of the Company by an affiliate of Cross Rapids Capital LP ("Cross Rapids Capital").

Founded in 1988 by Gary and Patty Stokes, PAK Quality Foods is a food distributor, serving foodservice, retail, and institutional customers throughout Texas and Eastern New Mexico. PAK Quality Foods currently operates with distribution facilities in San Angelo and Fort Worth and offers a full line of proteins (beef, pork, poultry, lamb, and seafood) as well as various cheeses, oils, and other dry goods. PAK Quality Foods focuses on long-term relationships with customers and guarantees product availability, timely deliveries, competitive pricing, and a responsive sales team.

FrigiServe is a technology-driven temperature-controlled supply chain company, serving food producers, retailers, foodservice providers, and other customers. FrigiServe currently operates a state-of-the-art purpose-built cold storage facility in DFW, which prides itself on high-quality service, advanced IT and inventory management technology solutions, and comprehensive services, including freezing, blast freezing, cross-docking, kitchen demonstration events, etc.

Mr. Gary Stokes, co-founder of the Company, said, "Our family is excited to partner with Cross Rapids Capital, who are experienced investors and will accelerate our growth and help us better serve our customers."

Concurrently with closing, the Company appointed Mr. John Pieper Chief Executive Officer of the Company. Mr. Pieper brings a wealth of protein and sales growth experience, with over 35 years of tenure in the field and in the Texas market. Mr. Stokes remains a significant shareholder of the Company, a member of the Board of Directors, and an Executive Officer of the Company. Mr. Terry Stokes remains Chief Financial Officer of the Company.

Mr. Gary Stokes added, "Thank you to our employees, customers, and supplier partners for your partnership. Our high-quality services will continue uninterrupted, and I am excited about the future."

Mr. Pieper shared, "PAK Quality is a uniquely well-managed business, with high growth potential. I am thrilled to join the team and build on the Company's strong foundation by adding more products and services to our offering, gaining additional customers, and expanding our footprint. Reliable and responsive service to our customers will always be our number one priority."

Mr. Kyle Cruz and Ms. Mina Spring, Partners at Cross Rapids Capital, concluded, "We believe PAK Quality is a strong platform for growth and look forward to providing additional tools and resources to execute the Company's long-term strategy."

Harris Williams & Co. served as financial advisor and Decker Jones PC as legal counsel to PAK Quality. Mayer Brown LLP served as legal counsel to Cross Rapids Capital. Maranon Capital L.P. and Manulife Investment Management provided the debt financing for the transaction.

About PAK Quality Foods, LLC

PAK Quality Foods is a food distributor, serving foodservice, retail, and institutional customers throughout Texas and Eastern New Mexico. PAK Quality Foods currently operates with distribution facilities in San Angelo and Fort Worth and offers a full line of proteins (beef, pork, poultry, lamb, and seafood) as well as various cheeses, oils, and other dry goods. PAK Quality Foods focuses on long-term relationships with customers and guarantees product availability, timely deliveries, competitive pricing, and a responsive sales team.

About D Bar Cold Storage, LLC dba FrigiServe

FrigiServe is a technology-driven temperature-controlled supply chain company, serving food producers, retailers, foodservice providers, and other customers. FrigiServe currently operates a state-of-the-art purpose-built cold storage facility in DFW, which prides itself on high-quality service, advanced IT and inventory management technology solutions, and comprehensive services, including freezing, blast freezing, cross-docking, kitchen demonstration events, etc.

About Cross Rapids Capital LP

Cross Rapids Capital LP is an operationally-driven investment firm, dedicated to North American middle-market industrial and services companies. We partner with owners and management teams to accelerate companies, and we bring decades of sector, operational, and investing expertise and a hands-on, collaborative approach to empower their business success.

SOURCE PAK Quality Foods LLC