Employees of the Elba-based Kelley Foods of Alabama were told yesterday that an agreement has been reached to sell the company to Ben E. Keith Foods of Ft. Worth, Texas. The official closing date of the sale is Sept. 30.

The Texas company is a family-owned business that has had close ties with the Kelley family for many years, Kelley Foods President Eddie Kelley said. The company is acquiring all assets for the Elba distribution center, as well as the manufacturing division.

Kelley Foods was founded in Elba in 1957, and has more than 2,000 customers in Alabama, Florida, Georgia, Mississippi and Louisiana. The company also has a manufacturing division in Elba that produces a line of smoked hams, sausage and other food products.

Kelley Foods currently has 175 employees, all of whom are expected to be retained. Current CEO Eddie Kelley and Vice President of Distribution Jerry Kelley will remain with the new company during a transition period. Scott Davison of Ben E. Keith Foods has been named general manager of the distribution division, which will be renamed Ben E. Keith Foods – Southeast Division. Scott Kelley will continue leading the manufacturing division, which will be known as Kelley Foods, a division of Ben E. Keith Foods.

The Texas firm was established in 1906 and is the eighth largest broad line foodservice distributor in the nation, with eight distribution points currently serving 12 Southwestern states.

–The Elba Clipper