Archer Foodservice Partners, backed by Wynnchurch Capital, has agreed to acquire Sterno's food service business from Compass Diversified. The El Paso-based distributor of food service products, led by CEO Joe Kubicek, is expanding its portfolio through this carveout deal. Sterno, headquartered in Texarkana, Texas, has been a provider of portable food-warming and tabletop solutions for over a century.

This acquisition represents a strategic move for Archer to strengthen its position in the food service distribution market. The deal involves Sterno's food service division, separating it from the company's broader operations. While financial terms remain undisclosed, the transaction highlights ongoing consolidation trends in the food service industry as companies seek to optimize their business portfolios.

For Wynnchurch Capital, this marks another successful platform investment in the industrial and distribution sectors. The carveout structure allows Archer to acquire specific assets while Compass Diversified retains other parts of the Sterno business. This type of transaction is increasingly common as companies focus on core competencies and divest non-strategic units.