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.

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.