Warehouse stores

US Foods completes the acquisition of Smart Foodservice Warehouse Stores

ROSEMONT, Illinois – (COMMERCIAL THREAD) – US Foods Holding Corp. (NYSE: USFD) today announced that it has successfully completed the previously announced $ 970 million cash acquisition of Smart Foodservice Warehouse Stores (“Smart Foodservice”). Today’s transaction excludes the Smart & Final retail grocery business, which was previously separate from Smart Foodservice.

Founded in 1955 and based in the greater Portland, Oregon area, Smart Foodservice operates 70 small-format cash and takeout stores in California, Washington, Oregon, Idaho, Nevada, Utah, and Montana that serve small to medium-sized restaurants. size and other food companies. customers with a wide assortment of products. Smart Foodservice will operate as a separate business unit within US Foods, with minimal integration required.

“We are delighted to welcome Smart Foodservice to the US Foods family,” said Pietro Satriano, President and CEO. “Through our shared commitment to supporting restaurateurs and providing top notch customer service, Smart Foodservice will complement our CHEF’STORE cash and carry model and provide a platform to strengthen our presence in this attractive channel. ”

US Foods funded the purchase price of the acquisition with cash and the proceeds of a $ 700 million term loan.

US Foods expects to achieve approximately $ 20 million in annual cost synergies at operating rates by the end of 2023, primarily through purchasing efficiency and the expansion of private label products.

About American Foods

US Foods is one of the largest food companies in the United States and a leading foodservice distributor, partnering with approximately 300,000 restaurants and foodservice operators to help their businesses succeed. With 28,000 associates and more than 70 locations, US Foods provides customers with a broad and innovative food offering and a comprehensive suite of e-commerce, technology and business solutions. US Foods is headquartered in Rosemont, Illinois, and generates more than $ 28 billion in annual revenue. Visit www.usfoods.com to learn more.

About Smart Food Service Warehouse Stores

Smart Foodservice Warehouse Stores is a chain of warehouse format stores catering to the food service industry and is based in Portland, Oregon. For more than 65 years, the company has offered a wide range of products in larger quantities in a convenient one-stop-shop. At the time of publication, the company operated 70 warehouse stores in Oregon, Washington State, California, Idaho, Nevada, Utah and Montana. For more information, please visit the Smart Foodservice website at www.smartfoodservice.com.

Forward-looking statements

Statements in this press release that are not historical in nature are “forward-looking statements” within the meaning of federal securities laws. These statements often include words such as “believe”, “expect”, “plan”, “anticipate”, “intend”, “plan”, “prospect”, “estimate”, “target”, “Seek”, “” “may”, “would”, “should”, “could”, “foresee”, “mission”, “strive”, “more”, “objective” or similar expressions and are based on various assumptions and our experience in the industry, as well as historical trends, current conditions and expected future developments. However, you should understand that these statements are not guarantees of performance or results and that there are a number of risks, uncertainties and other factors which could cause our actual results to differ materially from those. expressed in forward-looking statements, including, but not limited to: cost inflation / deflation and commodity volatility; competetion; the use of third-party suppliers; disruption of product supply or increased product costs; changes in our relationships with customers and purchasing groups; our ability to increase or maintain the highest margins of our business; effective integration of acquisitions; achieving the expected benefits of cost reduction initiatives; fluctuations in fuel costs; economic factors affecting consumer confidence and discretionary spending; changes in consumer eating habits; our reputation in the industry; labor relations and costs; access to a qualified and diversified workforce; cost and pricing structures; changes in tax laws and regulations and the resolution of tax disputes; government regulation; product recalls and product liability claims; adverse judgments or settlements resulting from litigation; disruption of existing technologies and the implementation of new technologies; cybersecurity incidents and other technological disruptions; management of end-of-career indemnities and retirement commitments; extreme weather conditions, natural disasters and other catastrophic events, including pandemics and the rapid spread of contagious diseases; risks associated with intellectual property, including potential infringement; indebtedness and restrictions under debt agreements; and potential increases in interest rates.

A discussion of additional risks and uncertainties is included in the sections titled “Risk Factors” and “Forward-Looking Statements” in US Foods’ Annual Report on Form 10-K for the year ended December 28, 2019, which was filed. with the Securities and Exchange Commission on February 13, 2020. The forward-looking statements contained in this press release speak only as of the date of this press release. We assume no obligation to update or revise any forward-looking statements.

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