Specialty food products distributor Chefs' Warehouse has acquired Allen Brothers, a US-based meat processor and distributor, in a $29.9m deal.
Allen Brothers caters to about 400 of restaurants, hotels, casinos and country clubs as well as to consumers through a direct mail and e-commerce platform.
The company is expected to generate up to $85m in annualized net sales in 2013.
As per the deal, $20m was paid at closing with cash proceeds from the recently completed common stock offering, while the remaining $9.9m is earnout consideration to be paid upon the achievement of certain performance milestones over the next four years.
Chefs' Warehouse chairman and CEO Chris Pappas said, "We are also extremely excited about the potential to build upon the e-commerce platform that Allen Brothers has built and begin to offer our high quality Chefs Warehouse products direct to the consumer.
"In addition, this combination provides a platform for us to build the Chicago market, which we think has significant long-term opportunities for Chefs' Warehouse."
The company expects Allen Brothers business to contribute approximately $0.01 to $0.03 to its earnings per share in 2014.
