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US Foods finalizes purchase of Smart Foodservice Warehouse Stores

Acquisition completed after US Foods announces $1B notes offering

US Foods completed the acquisition of Smart Foodservice Warehouse Stores. The $970M transaction was completed April 24 as previously scheduled. The third-largest broadline distributor by annual revenues also recently issued convertible equity to former investment partner KKR, which invested $500M in US Foods.

In addition, US Foods issued a private debt offering worth $1B. The secured notes, redeemable at face value at 6.25-percent interest, will be due in 2025. After its original announcement, Rosemont, Ill.-based US Foods raised the offering, which closes April 28, by $200M. The distributor announced it will use the funds to repay another $400M secured debt offering it used to finance the just-completed Smart Foodservice acquisition.


[Related article: KKR invests $500M in US Foods]

“With our shared commitment to supporting restaurant operators and providing best-in-class customer service, Smart Foodservice will complement our Chef’s Store cash and carry model and provide a platform to enhance our presence in this attractive channel,” said Pietro Satriano, chairman and chief executive, in a statement.

Photo credit: US Foods (logo)

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