Food Shippers of America - Fall/Winter 2016 - 33


ON

La Costena combined Faribault with
Tucson-based Arizona Canning, La
Costena's U.S. affiliate. The combined
companies now operate as Faribault
Foods with headquarters
in Minneapolis.
"The two companies are an excellent
match," said Reid MacDonald,
president and CEO of Faribault at
the time of the acquisition. "Both
companies are family owned and
financially strong. We believe
that this partnership represents
a significant opportunity for our
companies, employees, customers
and the communities where we
do business. We are excited to
accelerate the new organization's
growth."
MacDonald has since moved into an
advisory role, while Albert Hoflack
has become president and CEO of
Faribault.

"On the other hand, an acquisition
occurs when one company acquires
either the capital stock and/or the
assets of another," Rich continued.
"The acquired company becomes a part
of the acquiring entity and the acquired
business entity ceases to exist."
Acquisitions are often part of
a strategy a company uses to
gain market share, take out their
competition or acquire new services
or products to augment an existing
portfolio.
Integrating Faribault Foods
and La Costena
Two years ago, in 2014, La Costena,
a privately held packaged foods
company, completed the acquisition of
Minneapolis-based Faribault Foods, a
privately held manufacturer of canned
beans and vegetables.

The combination of the two companies
created a broad product offering
with complementary regional brands
including Arizona Canning's brands,
which include Sun Vista, Luck's, Kerns
and Totis. Faribault contributed S&W
Canned beans, Butter Kernel, Kuner's
and Kuner's Southwestern, Chilliman,
Mrs. Grimes, Pride and KC
Masterpiece baked beans.
Growth has followed. In April of this
year, Faribault broke ground on a
new $100 million, one million sq. ft.
manufacturing facility. The new plant
is slated to come online in September
of next year. Operations will include
manufacturing, canning, labeling,
storage and distribution.
Careful: Look Before Merging
Before two companies merge, they
usually prepare an analysis that
explores the potential benefits
and disadvantages of merging. In
particular, company executives - on
both sides - want to make sure that
there will be sufficient economic value
added to the new, merged company
entity to justify the move.

It is important to get that preliminary
analysis right. A surprisingly large
percentage of companies that carry out
mergers get it wrong. According to a
KPMG study from 2015, 83 percent of all
merger deals fail to boost shareholder
value. The study's authors determined
the cause of the failures lay with the
inability to deal with risks or costs, poor
strategy and weak managers.
The biggest failure, however, involved
trying to merge two companies with
different cultures. "We will never
acquire or merge with a company that
does not have a culture similar to ours -
regardless of its financial performance,"
Rich said. "Having a cultural fit makes it
easier to bring everybody into alignment
under common goals. Cultural issues
can kill a deal, no matter how sweet the
deal itself may be."
Rich describes the ROAR Logistics
culture as participative. Managers make
sure that everyone has an opportunity
to participate in the success of the
company and feel ownership in the
projects they take on.
"That's particularly important today
with the millennial generation coming
into the workforce," Rich said. "Young
people want responsibilities and
challenges. If you don't challenge them,
they won't like it. Our management
team gets this because it fits our
participatory company culture."
It's easy to see that a company
culture based on management edict
flowing from the top down will not fit
together smoothly in a merger with a
participatory company like ROAR.
Evaluating a Potential Merger or
Acquisition Partner
Companies that want to grow through
mergers or acquisition must do a lot of
research on prospective targets. "When
we research targets, we are looking
to identify several different business
situations," said Rich. "We look at how
close ownership is to retirement? Is a
partnership splitting up? Is the company
undercapitalized?

FOOD SHIPPERS OF AMERICA | www.foodshippersofamerica.org |

33


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Table of Contents for the Digital Edition of Food Shippers of America - Fall/Winter 2016

President’s Letter
Meet Your Board
Mentors Make a Difference
Are You Partnered with a 3PL Yet?
Caution: Merging Traffic
Retailers Sharpen Supply Chain Visibility With Improved Technology
Parking Woes Continue
Electronic Logging Devices: Myths and Facts
Tax and Accounting Changes Will Impact Transportation Industry
Retail Trends
Positive Attitudes and Strong Relationships: Key Tools for Success
From Farm to Fork
Narrow Focus to Separate from the Pack and Increase Sales Momentum
Industry Forecast
The Internet of Things
Member Profile: C&S Wholesale Grocers
Preparing for the New Overtime Pay Rules
10 Ways to Become an Effective Manager
Culture at Work is Everything, and Everything is Culture
FSA Members
In the News…
Index of Advertisers
Food Shippers of America - Fall/Winter 2016 - cover1
Food Shippers of America - Fall/Winter 2016 - cover2
Food Shippers of America - Fall/Winter 2016 - 3
Food Shippers of America - Fall/Winter 2016 - 4
Food Shippers of America - Fall/Winter 2016 - 5
Food Shippers of America - Fall/Winter 2016 - 6
Food Shippers of America - Fall/Winter 2016 - 7
Food Shippers of America - Fall/Winter 2016 - 8
Food Shippers of America - Fall/Winter 2016 - 9
Food Shippers of America - Fall/Winter 2016 - 10
Food Shippers of America - Fall/Winter 2016 - President’s Letter
Food Shippers of America - Fall/Winter 2016 - Meet Your Board
Food Shippers of America - Fall/Winter 2016 - 13
Food Shippers of America - Fall/Winter 2016 - 14
Food Shippers of America - Fall/Winter 2016 - 15
Food Shippers of America - Fall/Winter 2016 - Mentors Make a Difference
Food Shippers of America - Fall/Winter 2016 - 17
Food Shippers of America - Fall/Winter 2016 - 18
Food Shippers of America - Fall/Winter 2016 - 19
Food Shippers of America - Fall/Winter 2016 - 20
Food Shippers of America - Fall/Winter 2016 - 21
Food Shippers of America - Fall/Winter 2016 - 22
Food Shippers of America - Fall/Winter 2016 - 23
Food Shippers of America - Fall/Winter 2016 - 24
Food Shippers of America - Fall/Winter 2016 - 25
Food Shippers of America - Fall/Winter 2016 - 26
Food Shippers of America - Fall/Winter 2016 - 27
Food Shippers of America - Fall/Winter 2016 - 28
Food Shippers of America - Fall/Winter 2016 - Are You Partnered with a 3PL Yet?
Food Shippers of America - Fall/Winter 2016 - 30
Food Shippers of America - Fall/Winter 2016 - 31
Food Shippers of America - Fall/Winter 2016 - Caution: Merging Traffic
Food Shippers of America - Fall/Winter 2016 - 33
Food Shippers of America - Fall/Winter 2016 - 34
Food Shippers of America - Fall/Winter 2016 - 35
Food Shippers of America - Fall/Winter 2016 - 36
Food Shippers of America - Fall/Winter 2016 - 37
Food Shippers of America - Fall/Winter 2016 - Retailers Sharpen Supply Chain Visibility With Improved Technology
Food Shippers of America - Fall/Winter 2016 - 39
Food Shippers of America - Fall/Winter 2016 - 40
Food Shippers of America - Fall/Winter 2016 - 41
Food Shippers of America - Fall/Winter 2016 - 42
Food Shippers of America - Fall/Winter 2016 - 43
Food Shippers of America - Fall/Winter 2016 - 44
Food Shippers of America - Fall/Winter 2016 - Parking Woes Continue
Food Shippers of America - Fall/Winter 2016 - 46
Food Shippers of America - Fall/Winter 2016 - 47
Food Shippers of America - Fall/Winter 2016 - 48
Food Shippers of America - Fall/Winter 2016 - Electronic Logging Devices: Myths and Facts
Food Shippers of America - Fall/Winter 2016 - Tax and Accounting Changes Will Impact Transportation Industry
Food Shippers of America - Fall/Winter 2016 - 51
Food Shippers of America - Fall/Winter 2016 - 52
Food Shippers of America - Fall/Winter 2016 - 53
Food Shippers of America - Fall/Winter 2016 - Retail Trends
Food Shippers of America - Fall/Winter 2016 - 55
Food Shippers of America - Fall/Winter 2016 - 56
Food Shippers of America - Fall/Winter 2016 - 57
Food Shippers of America - Fall/Winter 2016 - Positive Attitudes and Strong Relationships: Key Tools for Success
Food Shippers of America - Fall/Winter 2016 - 59
Food Shippers of America - Fall/Winter 2016 - 60
Food Shippers of America - Fall/Winter 2016 - 61
Food Shippers of America - Fall/Winter 2016 - 62
Food Shippers of America - Fall/Winter 2016 - 63
Food Shippers of America - Fall/Winter 2016 - 64
Food Shippers of America - Fall/Winter 2016 - 65
Food Shippers of America - Fall/Winter 2016 - 66
Food Shippers of America - Fall/Winter 2016 - 67
Food Shippers of America - Fall/Winter 2016 - From Farm to Fork
Food Shippers of America - Fall/Winter 2016 - 69
Food Shippers of America - Fall/Winter 2016 - 70
Food Shippers of America - Fall/Winter 2016 - 71
Food Shippers of America - Fall/Winter 2016 - 72
Food Shippers of America - Fall/Winter 2016 - 73
Food Shippers of America - Fall/Winter 2016 - Narrow Focus to Separate from the Pack and Increase Sales Momentum
Food Shippers of America - Fall/Winter 2016 - 75
Food Shippers of America - Fall/Winter 2016 - 76
Food Shippers of America - Fall/Winter 2016 - 77
Food Shippers of America - Fall/Winter 2016 - 78
Food Shippers of America - Fall/Winter 2016 - 79
Food Shippers of America - Fall/Winter 2016 - 80
Food Shippers of America - Fall/Winter 2016 - Industry Forecast
Food Shippers of America - Fall/Winter 2016 - The Internet of Things
Food Shippers of America - Fall/Winter 2016 - 83
Food Shippers of America - Fall/Winter 2016 - 84
Food Shippers of America - Fall/Winter 2016 - 85
Food Shippers of America - Fall/Winter 2016 - 86
Food Shippers of America - Fall/Winter 2016 - Member Profile: C&S Wholesale Grocers
Food Shippers of America - Fall/Winter 2016 - 88
Food Shippers of America - Fall/Winter 2016 - Preparing for the New Overtime Pay Rules
Food Shippers of America - Fall/Winter 2016 - 90
Food Shippers of America - Fall/Winter 2016 - 91
Food Shippers of America - Fall/Winter 2016 - 92
Food Shippers of America - Fall/Winter 2016 - 93
Food Shippers of America - Fall/Winter 2016 - 94
Food Shippers of America - Fall/Winter 2016 - 10 Ways to Become an Effective Manager
Food Shippers of America - Fall/Winter 2016 - 96
Food Shippers of America - Fall/Winter 2016 - 97
Food Shippers of America - Fall/Winter 2016 - Culture at Work is Everything, and Everything is Culture
Food Shippers of America - Fall/Winter 2016 - 99
Food Shippers of America - Fall/Winter 2016 - 100
Food Shippers of America - Fall/Winter 2016 - 101
Food Shippers of America - Fall/Winter 2016 - FSA Members
Food Shippers of America - Fall/Winter 2016 - In the News…
Food Shippers of America - Fall/Winter 2016 - 104
Food Shippers of America - Fall/Winter 2016 - 105
Food Shippers of America - Fall/Winter 2016 - 106
Food Shippers of America - Fall/Winter 2016 - Index of Advertisers
Food Shippers of America - Fall/Winter 2016 - 108
Food Shippers of America - Fall/Winter 2016 - 109
Food Shippers of America - Fall/Winter 2016 - 110
Food Shippers of America - Fall/Winter 2016 - cover3
Food Shippers of America - Fall/Winter 2016 - cover4
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