The Coastal Companies has acquired fresh produce processor Lancaster Foods from Guest Services, a hospitality management company in Fairfax, Virginia, US.

None of the parties involved has divulged any financial details.

Established in 1986, Lancaster Foods provides fresh produce, organics, fresh-cut and retail-ready fruits and vegetables.

Lancaster Foods president John Gates said: “Lancaster and Coastal have emerged as leaders in their markets. We have shared values around people and relationships. We are excited to be joining The Coastal Companies.

“Together, our network of vendors and our portfolio of products and services will enable us to provide even greater value to our customers.”

The company will operate with its existing management team and its current brand name post-acquisition.

It will join Coastal Sunbelt Produce, East Coast Fresh and Hearn Kirkwood as subsidiaries of The Coastal Companies.

The Coastal Companies expects the deal to strengthen its retail presence.

It will also allow Lancaster Foods to add grab-and-go, ready-to-eat and prepared foods to its product portfolio.

The Coastal Companies CEO John Corso said: “We are delighted to welcome Lancaster Foods to our family of companies.

“Lancaster Foods shares our values of quality and service. This transaction pairs Lancaster’s leading position in retail with our leading position in foodservice to significantly expand The Coastal Companies’ market reach, sourcing and value-added capabilities.”

Gates will join The Coastal Companies board of directors and executive leadership team.

Corso further added: “The company has grown because we take care of our customers, we take care of our people and we invest in our business.

“Lancaster Foods is a great strategic and cultural fit with The Coastal Companies. We look forward to partnering with John Gates and his team.”