US Foods wraps up $970m acquisition of Smart Foodservice Warehouse Stores
US Foods has wrapped up its $970 million acquisition of Oregon-based warehouse grocery store chain Smart Foodservice Warehouse Stores from funds managed by affiliates of Apollo Global Management.
The deal excludes the Smart & Final retail grocery business, which was separated previously from Smart Foodservice.
Established in 1955 and based in the greater Portland, Smart Foodservice runs 70 small-format cash and carry stores in the US states of California, Washington, Nevada, Oregon, Idaho, Utah, and Montana.
The Smart Foodservice stores are said to cater to small and mid-sized restaurants and other food business customers with a wide range of products. The warehouse grocery store chain will operate as a separate operating unit within US Foods, with not much of integration required.
US Foods acquire Smart Foodservice Warehouse Stores. Image courtesy of Pete Linforth from Pixabay.
Commenting on the closing of US Foods acquisition of Smart Foodservice, Pietro Satriano – Chairman and CEO of US Foods, said: “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.”
US Foods said that it funded the acquisition with cash on hand and the proceeds from a term loan of $700 million.
The US foodservice distributor expects to achieve nearly $20 million in annual run-rate cost synergies by the end of 2023, mainly via purchasing efficiencies and growth of private brand products.