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JULY 24, 2006


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

 

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