PAK Quality Foods expands in the Southwest by buying H&R Foods, sharpening its Texas reach

What happened and where it matters

PAK Quality Foods has acquired H&R Foods, a move that immediately adds a familiar regional distributor to PAK’s footprint in West Texas and eastern New Mexico. The companies announced the deal in a joint statement this week. The purchase covers H&R’s distribution routes, warehouses and customer relationships across the region, and PAK says the handover will begin right away with operations continuing under the PAK banner.

How the deal works and why the companies say it makes sense

Both sides described the transaction as an outright acquisition, with PAK buying H&R’s assets and business operations. Specific financial terms were not disclosed in the announcement. The companies framed the deal as tactical: it brings more delivery routes, warehouse space and local customers into a single owner that already operates in nearby markets.

PAK said the acquisition will let it serve grocery stores, restaurants and institutions in the area more efficiently, by using its existing logistics and buying power to cut costs and reduce overlap. H&R’s owners pointed to a smooth transition for customers and suppliers as the main goal.

The statement emphasized continuity: PAK plans to keep current service schedules and to use the H&R facilities to expand product choice. Company spokespeople highlighted faster restocking and broader product assortments as near-term benefits for buyers who rely on regular deliveries.

The players: who PAK Quality Foods, H&R Foods and Cross Rapids Capital are

PAK Quality Foods is a regional food-distribution company that supplies groceries, restaurant ingredients and institutional food products. It operates in several states and has grown in recent years through a mix of organic expansion and acquisitions of smaller local distributors.

H&R Foods has been a local distributor focused on West Texas and eastern New Mexico. It built customer ties over time by serving independent grocers, cafes and some mid-size restaurants. Before the takeover, H&R operated its own routes and warehousing in the markets it serves.

Cross Rapids Capital is cited as the ownership group linked to the transaction. Based on the companies’ statements, the businesses involved are privately held rather than public companies traded on stock markets. That means this deal is being handled outside the public markets, with fewer public filings and less disclosure than a deal between public firms.

How the deal could change food distribution in the region

For shoppers and businesses in Texas and eastern New Mexico, the most visible changes will likely be quicker restocks and a wider range of products arriving from a single supplier. By folding H&R’s routes into its network, PAK can reduce duplicate stops and move goods more smoothly between warehouses and customers.

On the competitive side, smaller independent distributors in the region now face a larger player with deeper buying power. That could squeeze margins for tiny rivals, who will either need to specialize, improve service on narrow niches, or consider partnering with larger wholesalers. But for many local stores and restaurants, a bigger distributor can mean steadier deliveries and access to brands that were hard to source before.

What employees, customers and suppliers should expect next

Both companies say they intend to keep operations running during the transition and that existing delivery schedules will continue for now. The announcement mentioned plans to integrate systems and routes over the coming weeks, which is when customers might notice small timing changes as routes are adjusted and inventory is shifted into PAK’s logistics network.

Employees at H&R were described as a practical focus for the transition. The buyer indicated it plans to retain staff and leverage their local knowledge, though final decisions on roles and reporting lines will emerge as integration work proceeds. Suppliers should expect to hear from consolidated purchasing teams about ordering and invoicing procedures.

For anyone wanting the official word, the companies say they issued a press statement and that company media contacts are available for questions. The near-term picture is one of continuity with a steady push to fold H&R’s strengths into a larger regional operation.

Sources

• prnewswire.com