US Foods announced that it has successfully completed the previously announced $970 million all cash acquisition of Smart Foodservice Warehouse Stores. The transaction that closed today excludes the Smart & Final retail grocery business, which was previously separated from Smart Foodservice.
Founded in 1955 and headquartered in the greater Portland, OR area, Smart Foodservice operates 70 small-format cash and carry stores across California, Washington, Oregon, Idaho, Nevada, Utah and Montana that serve small and mid-sized restaurants and other food business customers with a broad assortment of products. Smart Foodservice will operate as a separate operating unit within US Foods, with minimal integration required.
“We are pleased to welcome Smart Foodservice to the US Foods family,” said Chairman and CEO Pietro Satriano. “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 funded the purchase price for the acquisition with cash on hand and the proceeds from a $700 million term loan.
US Foods expects to achieve approximately $20 million in annual run-rate cost synergies by the end of 2023, primarily through purchasing efficiencies and expansion of private brand products.