US Foods completed the $970 million all cash acquisition of Smart Foodservice Warehouse Stores. The transaction excludes the Smart & Final retail grocery business, which was previously separated from Smart Foodservice.
Smart Foodservice Warehouse Stores is a chain of warehouse-format stores catering to the foodservice industry and is based in Portland, OR. The company operates 70 small-format cash and carry stores across California, Washington, Oregon, Idaho, Nevada, Utah and Montana, and serves small and mid-sized restaurants and other food business customers. Smart Foodservice will operate as a separate operating unit within US Foods.
“We are pleased to welcome Smart Foodservice to the US Foods family,” 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 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.
US Foods is a food company and a foodservice distributor. The company partners with approximately 300,000 restaurants and foodservice operators.