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April 27, 2020

US Foods closes $970m Smart Foodservice Warehouse Stores acquisition

Foodservice distributor US Foods has completed its previously announced acquisition of Smart Foodservice Warehouse Stores.

Foodservice distributor US Foods has completed its previously announced acquisition of Smart Foodservice Warehouse Stores.

The deal closed more than a month after the two companies entered a definitive agreement to execute the transaction.

As agreed, US Foods paid $970m in cash as consideration.

Established in 1955, Smart Foodservice operates warehouse-format stores that provide restaurant supplies.

The company operates approximately 70 small-format cash and carry stores across several US states that cater to small, mid-sized restaurants and other food business customers.

With the acquisition now closed, Smart Foodservice will operate as a separate unit within US Foods.

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The Smart & Final retail grocery business, which was separated from Smart Foodservice, was excluded from the transaction.

US Foods chairman and CEO Pietro Satriano said: “We are pleased to welcome Smart Foodservice to the US Foods family.

“With our shared commitment to supporting restaurant operators and providing best-in-class customer service, Smart Foodservice will complement our CHEF’STORE cash and carry model and provide a platform to enhance our presence in this attractive channel.”

Illinois-based US Foods funded the transaction with available cash and proceeds received from a $700m term loan.

The acquisition is expected to provide the company with nearly $20m in annual run-rate cost synergies by the end of 2023. It will also help to increase its footprint in the cash and carry foodservice market.

As a foodservice distributor, US Foods counts approximately 300,000 restaurants and foodservice operators as its partners.

It has more than 70 locations and generates over $28bn in annual revenue.

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