U.S. Foodservice Announces Acquisition of
Savage Foods and Distribution Facility Expansions
COLUMBIA,
Md., July 24 /PRNewswire/ -- U.S. Foodservice
today announced expansions at several of its U.S.
distribution facilities and the signing of a definitive
purchase agreement to acquire Savage Foods, a
St. Louis area custom meat processor.
"On November 29, 2005, we announced that
expansion and acquisition were key components
of our long-term growth strategy for U.S. Foodservice,"
said Lawrence Benjamin, U.S. Foodservice CEO.
"We are pleased to announce today our first
acquisition as part of this new strategy and we
also have a number of facility expansions planned,
underway and recently completed. Based on continued
improvements in our financial and industry performance,
we are increasing our investment in growth."
Savage Foods, based in Chesterfield, Missouri,
is a family-owned meat processor, founded in 1955,
that distributes to independent restaurants, hospitality
and lodging customers and other foodservice businesses.
"We are excited to be joining forces with
U.S. Foodservice and are confident that this transaction
will enhance our ability to service our current
customers and create new opportunities for growth,"
said Paul Savage, Jr., who will remain president
of the company.
Savage Foods operates from a state-of-the-art
meat processing facility newly constructed in
2004. Savage Foods will become a part of U.S.
Foodservice's Stock Yards specialty meat business.
The acquisition is subject to standard conditions
to closing and terms are not being disclosed.
In addition to the planned acquisition of Savage
Foods, U.S. Foodservice facility expansions have
added approximately 750,000 square feet of capacity
in the past year, with an additional 350,000 square
feet planned to be added in the next eighteen
months. These expansions involve distribution
centers in: Columbia, South Carolina; Raleigh,
North Carolina; Dallas, Texas; Las Vegas, Nevada;
Tampa, Florida; Cleveland, Ohio; Manassas, Virginia;
Greensburg, Pennsylvania; Salem, Missouri; La
Mirada, California; Ft. Mill, South Carolina;
Bismarck, North Dakota; and Corona, California.
U.S. Foodservice is one of the largest broadline
foodservice distributors in the United States.
The company distributes food and related products
to more than 250,000 customers, including restaurants,
healthcare facilities, lodging establishments,
educational and governmental institutions. U.S.
Foodservice markets and distributes more then
43,000 national and exclusive brand items and
employs more than 27,000 foodservice professionals.
The company is a subsidiary of Royal Ahold, a
Netherlands-based food retailer and distributor.
For more information about U.S. Foodservice, visit
http://www.usfoodservice.com
Forward-looking statements notice
Certain statements in this press release are forward-looking
statements within the meaning of the U.S. federal
securities laws. These statements include, but
are not limited to, statements as to facility
expansions planned or underway, improvements in
the financial and market performance of U.S. Foodservice,
expectations as to the transaction enhancing U.S.
Foodservice's ability to service its customers
and creating new opportunities for growth, the
fulfillment of the conditions for closing the
transaction and similar future transactions and
the timing thereof. These forward-looking statements
are subject to risks, uncertainties and other
factors that could cause actual results to differ
materially from the future results expressed or
implied by the forward-looking statements. Many
of these risks and uncertainties relate to factors
that are beyond the U.S. Foodservice's ability
to control or estimate precisely and such factors
include, but are not limited to, the ability of
U.S. Foodservice's management to implement and
complete successfully its long-term strategy or
delays or additional costs encountered in connection
with its implementation, the effect of general
economic conditions and competition, fluctuations
in exchange rates or interest rates, actions of
competitors, vendors, customers, unions, contractors,
government agencies and other third parties, unanticipated
disruptions in U.S. Foodservice's operations,
unanticipated increases in operating expenses,
increases in energy costs and transportation costs,
any reduction in the purchasing power of end-customers,
the benefits and cost savings from and resources
generated by U.S. Foodservice's long-term strategy
being less than or different from those anticipated,
any slowdown in independent restaurant growth,
the ability to recruit and retain key personnel,
U.S. Foodservice's ability to fulfill, or delays
in fulfilling, the closing conditions of the transaction,
and other factors some of which are discussed
in Ahold's publicly filed reports. Readers are
cautioned not to place undue reliance on these
forward-looking statements, which speak only as
of the date of this press release. Neither Ahold
nor U.S. Foodservice undertakes any obligation
to publicly release any revisions to these forward-looking
statements to reflect events or circumstances
after the date of this press release, except as
may be required by applicable securities laws.
Outside The Netherlands, Koninklijke Ahold N.V.,
being its registered name, presents itself under
the name of "Royal Ahold" or simply
"Ahold."
U.S. Foodservice
Contact: Rob Meyne of U.S. Foodservice,
Phone: +1-972-523-2070
E-mail: rob.meyne@usfood.com/
Web site: http://www.usfoodservice.com