US Foods wraps up $970m acquisition of Smart Foodservice Warehouse StoresTagged with: Apollo Global Management | Grocery Store Chain | Oregon | Pietro Satriano | Retail acquisition news | Smart & Final | Smart Foodservice Warehouse Stores | US Foods
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.
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.