Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, May 1, 2020

Article Excerpt

US FOODS HOLDING CORP., $19.47, symbol USFD on New York, is one of the largest foodservice distributors in the U.S. The company services more than 300,000 restaurants and foodservice businesses from 70 locations across the country. US Foods announced on April 24, 2020 that it was acquiring Smart Foodservice Warehouse Stores. Founded in 1955 and headquartered in the greater Portland, Oregon area, Smart Foodservice operates 70 small-format cash-and-carry stores in six states including California, Washington, and Oregon. Smart Foodservice’s main customers are small and medium-sized restaurants. US Foods is paying $970 million for the acquisition. It will pay with cash on hand, as well as use a $700 million loan. The company expects to find $20 million in annual cost savings from the acquisition. The addition of Smart Foodservice strengthens the company’s position in the cash-and-carry market in the U.S. where it already operates through its CHEF’STORE unit. Meanwhile, to raise funds to help sustain its operations during the COVID-19 crisis, on April 21,…