View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
April 27, 2020updated 02 Feb 2022 11:45am

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.

Free Report
img

The critical role of sustainability for Foodservice success in the 2020s

Consumers have radically re-thought their priorities in recent years and changed their habits for the good of the planet, starting to hold companies accountable for their ESG activities. These changes are set to be significant hallmarks of the Consumer Landscape in the 2020s. In order to appease consumers’ new concerns, meeting these new sustainability imperatives will be crucial for the recovery of the Foodservice industry. Consumers are expected to use ESG criteria much more actively in their selection of Foodservice brands to engage with. Download GlobalData’s free report to:
  • Understand the range of ESG challenges currently facing the Foodservice sector
  • Gain insight into consumers’ expectations via consumer survey deep dives
  • Learn from foodservice operators and brands who are already successfully embracing ESG strategies
Stay ahead of consumer concerns and rise to meet them. Download the report now.
by GlobalData
Enter your details here to receive your free Report.

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.

Free Report
img

The critical role of sustainability for Foodservice success in the 2020s

Consumers have radically re-thought their priorities in recent years and changed their habits for the good of the planet, starting to hold companies accountable for their ESG activities. These changes are set to be significant hallmarks of the Consumer Landscape in the 2020s. In order to appease consumers’ new concerns, meeting these new sustainability imperatives will be crucial for the recovery of the Foodservice industry. Consumers are expected to use ESG criteria much more actively in their selection of Foodservice brands to engage with. Download GlobalData’s free report to:
  • Understand the range of ESG challenges currently facing the Foodservice sector
  • Gain insight into consumers’ expectations via consumer survey deep dives
  • Learn from foodservice operators and brands who are already successfully embracing ESG strategies
Stay ahead of consumer concerns and rise to meet them. Download the report now.
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Verdict Food Service