ROSEMONT -- US Foods Holding Corp. said it will acquire Smart Foodservice Warehouse Stores in a $970 million cash deal.
Smart Foodservice operates 70 small-format cash and carry stores in California, Washington, Oregon, Idaho, Nevada, Utah and Montana that serve small and mid-sized restaurants and other food business customers with a broad assortment of products. Founded in 1955 and headquartered near Portland, Oregon, Smart Foodservice employs approximately 900 associates and had 2019 revenues of approximately $1.1 billion.
Smart Foodservice will operate as a separate operating unit within US Foods, the company said. The acquisition does not include the Smart & Final retail grocery business, which was separated from Smart Foodservice prior to the sale.
US Foods will finance the acquisition primarily existing financing.
"With an established footprint and a consistent record of profitable growth, Smart Foodservice will complement our Chef'store cash and carry model and provide a platform to significantly accelerate our presence in this attractive, growing channel," said US Foods chairman and CEO Pietro Satriano.