Y. Hata & Co. purchases Hawaii competitor King Food Service

Hawaii foodservice wholesale distributor Y. Hata & Co. has purchased the operating and real estate assets of competitor King Food Service for an undisclosed price.

The acquisition does not include the debt of King Food Service, which was considering shutting down in recent weeks due to the owners' desire to exit the business, according to Y. Hata Chief Operating Officer Jim Cremins.

The asset-based purchase, which has been in the works for the past six weeks, closed on Monday, and includes the acquisition of King Food Service's 50,000-square-foot facility.

"The purchase allows us to diversify our business and to sell to a different class of customer," Cremins told Pacific Business News. "It won't have any significant change on either business as our intention is to operate King Food Service as a separate division."

Y. Hata retained almost all of King's 32 employees in the purchase, which will also allow Y. Hata to significantly expand its product line, Cremins said.

The century-old company also owns ChefZone, a 45,000-square-foot warehouse designed for restaurant owners that opened in 2014.

"With Y. Hata, ChefZone and King Food Service, we now can be relevant to almost any restaurant operator in state of Hawaii," Cremins said.