US: US Foodservice to acquire Savage
Maryland-based food distributor US Foodservice has announced it has signed a definitive purchase agreement to acquire the Missouri meat processor Savage Foods. The company also reported details of the recent and planned expansion of its US distribution facilities.
"On November 29, 2005, we announced that expansion and acquisition were key components of our long-term growth strategy," said US Foodservice CEO Lawrence Benjamin. "We are pleased to announce today (24 July) 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 is based in Chesterfield, Missouri, and is a family-owned meat processor, serving independent restaurants, hospitality and lodging customers and other foodservice businesses. Paul Savage, Jr., is to remain as president of the company.
"We are excited to be joining forces with US Foodservice and are confident that this transaction will enhance our ability to service our current customers and create new opportunities for growth," Savage said.
Savage Foods will become a part of US Foodservice's Stock Yards specialty meat business. US Foodservice said the acquisition remained subject to customary closing conditions and no financial details of the deal were disclosed.
US Foodservice also reported that expansions to various distribution facilities have added approximately 750,000 square feet of capacity in the past year. A further 350,000 square feet are planned to be added over the next 18 months, the company said.
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