NEW YORK: Buyers Edge Platform, a pioneer in digital procurement for the foodservice sector, has announced a substantial $425 million preferred equity investment. The investment round is spearheaded by General Atlantic Credit’s Atlantic Park fund, with notable contributions from Blackstone Tactical Opportunities and Morgan Stanley Tactical Value funds.

The infusion of capital is set to propel Buyers Edge Platform’s ambitious growth plans, which include cutting-edge platform innovation, strategic mergers and acquisitions, and a targeted expansion into the European market. This strategic funding marks the exit of Bregal Sagemount, the company’s initial institutional investor, and sees John Davie, the company’s founder and CEO, bolstering his majority stake.

Founded in 1998, Buyers Edge Platform has been at the forefront of transforming the foodservice industry through technological advancements, enhanced purchasing power, and strategic partnerships. With a commanding $60 billion in aggregated spend volume, the company has consistently delivered cost reductions, supply chain efficiencies, and technological solutions to over 200,000 restaurant operator locations worldwide.

The company’s diverse portfolio spans across Digital Procurement Network, Fresh Solutions, Supply Chain Management, and Software, all underpinned by more than two decades of operational expertise.

As part of the investment deal, Matthew Bonanno is set to join the Board of Directors at Buyers Edge Platform. Shary Moalemzadeh, Senior Managing Director at Blackstone Tactical Opportunities, expressed enthusiasm for the company’s trajectory, stating, “We are excited to back John and his talented team to further accelerate the Company’s growth.”

John Davie, along with his immediate family, will increase their significant majority ownership, reaffirming their commitment to steering a high-growth, technology-driven enterprise while maintaining its entrepreneurial ethos.

John Davie, Founder and CEO of Buyers Edge Platform, said, “Buyers Edge Platform has always been focused on driving better economic outcomes for foodservice stakeholders through technology. Our new partnership with GA Credit, Blackstone, and Morgan Stanley Tactical Value will enable us to fund key strategic initiatives and provide us with access to these firms’ global platforms and operational resources. Their support will allow us to continue on our mission of delivering even greater efficiency, connectivity, and value to the foodservice ecosystem. We also want to thank the team at Bregal Sagemount for helping to enable our significant expansion over the last five years. Together, we have grown our revenue and profits by ~300% since Bregal Sagemount’s initial investment in 2019. We pursued a highly value-accretive M&A strategy by integrating 21 acquisitions, while driving strong organic growth.”

While additional financial details remain undisclosed, J.P. Morgan Securities LLC and William Blair & Company, LLC have been instrumental as placement agents in this transaction. The investment is poised to unlock new horizons for Buyers Edge Platform as it continues to innovate and expand its global footprint in the foodservice industry.

Matthew Bonanno, Managing Director at GA Credit, commented, “Buyers Edge Platform is bringing digital innovation to a traditionally underserved market. The Company is deeply ingrained in the industry value chain, leveraging long-term relationships with manufacturers and distributors to deliver meaningful cost savings to restaurant operators, as well as data and technology to drive market-wide efficiencies. We have strong conviction in Buyers Edge Platform’s differentiated model and believe the Company has considerable runway ahead to continue scaling both domestically and internationally. We look forward to partnering with John and the management team to support the Company’s M&A pipeline and organic growth ambitions.”